During the global financial crisis, many central banks in advanced economies engaged in credit easing. These policies … this paper, we study empirically whether credit easing is also a viable policy tool to cope with banking crises in emerging …

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 …

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 …

banking systems are less prone to experience a systemic crisis and exhibit increased time to crisis. This result holds even … when we control for banking system concentration, which is associated with higher probability of crisis and shorter time to … crisis. Our results indicate that competition and concentration capture different characteristics of banking systems, meaning …

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 …

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 …

purpose, we use data on long-term interbank loans among more than 6,000 banks during 1997-2012 to construct a yearly global … countries experiencing systemic banking crises on bank profitability and loan supply. We find that direct exposures to crisis … countries squeeze banks' profit margins, thereby reducing their returns. Indirect exposures to crisis countries enhance this …

Banks guarantee international trade through letters of credit. This paper analyzes what happens to trade when the … critical role of banks as trade guarantors is compromised. Using the case of the Greek capital controls in 2015, the events … around which led to a massive loss of confidence in the domestic banking system, we show that firms whose operations were …

Outside of financial crises, investors have little incentive to produce private information on banks' short …