This paper argues that in the European Union (EU) deposit insurance funds are too difficult to use in bank resolution … and too easy to use outside resolution. The paper proposes reforms in three areas for the effective management of bank … failures of small and medium-sized banks in the European Union: making resolution the norm for dealing with failing banks …

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 …

of financial contagion based on bank balance sheet identities and behavioral assumptions of deleveraging. Cascade effects … can be triggered by bank losses or contractions of interbank lending activities. As a result of shocks on assets or on … illustrate the use of the model and the relative importance of contagion channels, relying on bank losses of advanced countries …

conditions, and the regulatory environment. We use this model to simulate bank credit losses for stress-testing purposes and to … that can be made to capture country-specific institutional features. The model uses bank portfolio data broken down by risk …