We analyze the emergence of systemic risk in a network model of interconnected bank balance sheets. The model … bank's individual contribution to systemic risk diverges from the optimal macroprudential capitalization of the banks from …

sovereign bonds of the Eurozone. …

examine the impact of the European Central Bank Securities Markets Programme [SMP] implemented in May 2010 and re- activated …

of the MES on bank characteristics, we first find that the MES can be roughly rationalized in terms of standard balance … sheet indicators of bank financial soundness and systemic importance. We then ask whether the cross section of the MES can …

prior to the crisis do not predict either bank failure or bank share prices decline, but D2D measured in mid-2008 does have … some predictive value for failure by end-year. The ‘option value’ of the bank safety net remains small except at the height … of the crisis and there is little indication of bank shareholders consciously using the safety net to shift risk onto …

a deficit bank can mitigate a liquidity shortage by holding more claims on a surplus bank. Meanwhile, a greater … imbalance in liquidity positions across banks tends to aggravate the liquidity shortage of a deficit bank. According to … comparative analysis between different types of network structures, a core-periphery network with a deficit money center bank …