activity. We examine the linkages between the financial and real sectors in the euro area, finding that (i) bank loan supply … responds negatively to declines in bank soundness; (ii) a cutback in bank loan supply has a negative impact on economic …. These estimates imply that the currently estimated bank losses would subtract some 2 percentage points from the euro area …

Cooperative banks are an important, and growing, part of many financial systems. This paper empirically analyzes the … role of cooperative banks in financial stability. Contrary to some suggestions in the literature, we find that cooperative … banks are more stable than commercial banks. This finding is due to the lower volatility of the cooperative banks'' returns …