risk of the euro area banking system based on bilateral linkages. We develop a Contagion Mapping model fully calibrated …This paper presents a novel approach to investigate and model the network of euro area banks' large exposures within … the global banking system. Drawing on a unique dataset, the paper documents the degree of interconnectedness and systemic …

This paper studies banks' decision to form financial interconnections using a model of financial contagion that … behaviour of competitive banks, where they balance the benefits of forming interbank linkages against the cost of contagion. We …

stability of the banking system, a government's commitment to shield banks from contagion may increase their incentives to …We revisit the link between bailouts and bank risk taking. The expectation of government support to failing banks … bailout rents are low and the risk of contagion (upon a bank failure) is high. The optimal policy may then be not to try to …

This paper examines whether the coordinated use of macroprudential policies can help lessen the incidence of banking … banking crisis. As well, a crisis in other countries with high trade and financial linkages raises the crisis probability …. However, whether such 'contagion effects' can operate to reduce crisis probabilities when highly linked countries execute …

We update the widely used banking crises database by Laeven and Valencia (2008, 2010) with new information on recent … banking, currency, and sovereign debt crises during the period 1970-2011. The data show some striking differences in policy …

theoretical and empirical explanations of four types of financial crises-currency crises, sudden stops, debt crises, and banking …

This paper updates the database on systemic banking crises presented in Laeven and Valencia (2008, 2013). Drawing on … 151 systemic banking crises episodes around the globe during 1970-2017, the database includes information on crisis dates …, policy responses to resolve banking crises, and the fiscal and output costs of crises. We provide new evidence that crises in …

This paper assesses whether and how financial development triggers the occurrence of banking crises. It builds on a …

To complement the early warning signals literature, we study the determinants of banking and currency crises for small …—is critical to reduce the likelihood of both banking and currency crises. The backing ratio is particularly important during years …