We use data on 1,294 banks in Central and Eastern Europe to analyze how bank ownership and creditor coordination in the …

the probability of financial crisis. It finds that greater tax bias is associated with significantly higher aggregate bank …

We measure bank vulnerability in emerging markets using the distance-to-default, a risk-neutral indicator based on … 38 banks in 14 emerging market countries. Results show it can predict a bank''s credit deterioration up to nine months in … advance. The distance-to-default, hence, may prove useful for bank monitoring purposes …

associated with a specific bank. Our approach defines the banking system as a portfolio of banks and infers the system …

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 …

This paper develops a model to assess how monetary policy rates affect bank risk-taking. In the model, a reduction in … bank extracts from borrowers. Under limited liability, this increased profitability affects only upside returns, inducing … the bank to take excessive leverage and hence risk. Excessive risk-taking increases as the interest rate decreases. At a …

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 …