We analyze the transmission of bank-specific liquidity shocks triggered by a credit rating downgrade through the … lending channel. Using bank-level data for US Bank Holding Companies, we find that a credit rating downgrade is associated …

precautionary liquidity buffers is associated with measures of bank size, profitability, capitalization, and financial development …

The paper analyzes the relationship between bank competition and stability, with a specific focus on the Middle East … and North Africa. Price competition has a positive effect on bank liquidity, as it induces self-discipline incentives on … banks for the choice of bank funding sources and for the holding of liquid assets. On the other hand, price competition may …

One of the challenges of financial stability analysis and bank stress testing is how to establish scenarios with … capital positions. The outcome suggests that spillover effects have a highly non-linear impact on bank soundness, both in …

Understanding the interaction between bank solvency and funding cost is a crucial pre-requisite for stress-testing. In … this paper we study the sensitivity of bank funding cost to solvency measures while controlling for various other measures … of bank fundamentals. The analysis includes two measures of bank funding cost: (a) average funding cost and (b) interbank …

Whether and to what extent tougher bank regulation weighs on economic growth is an open empirical question. Using data … from 28 manufacturing industries in 50 countries, we explore the extent to which cross-country differences in bank … enterprises. This relationship, however, exists only for bank-based systems and emerging market economies. In the pre …

contract their balance sheets. These bank responses generate externalities that propagate in the form of macro … macro-financial feedback loops can significantly affect macroeconomic outcomes and bank-specific stress tests results. The … heterogeneity in bank lending responses matters: it determines how each bank fares under adverse conditions and the external effects …

these operations. Despite a vast literature on the topic, central bank approaches and practices vary considerably. In this …

countries, central bank holdings of dollar reserves are significantly correlated with the dollar-denominated bank borrowing of … model in which the central bank can deal with private-sector mismatch, and the associated risk of a domestic financial … crisis, in two ways: (i) by imposing ex ante financial regulations such as bank capital requirements; or (ii) by building a …