The crisis in Europe has underscored the vulnerability of European bank funding models compared to international peers …. This paper studies the drivers behind this fragility and examines the future of bank funding, primarily wholesale, in … possible policy options and bank actions to enhance European bank funding models’ robustness …

We reconsider the design of welfare-optimal monetary policy when financing frictions impair the supply of bank credit …

with bank-level data to study the contagion potential of an exogenous shock via credit and funding risks. We find that …-linear function of the combination of network structures and bank-specific characteristics …

The paper focuses on the impact of diversification on bank performance and how consolidation through mergers and … indigenous banks, as compared to foreign competitors in the ECCU. We then simulate bank mergers both within and across ECCU … countries by combining individual banks' balance sheets. The simulation shows that a typical indigenous bank could better …

stable over the financial cycle, including post-crisis, and there is no clear evidence that aspects of bank business model …

conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank …

policymakers’ efforts to strengthen bank capitalization …