We investigate the transmission of central bank liquidity to bank deposits and loan spreads in Europe over the period … from January 2006 to June 2010. We find evidence consistent with an impaired transmission channel due to bank risk. Central … bank liquidity does not translate into lower loan spreads for high-risk banks for maturities beyond one year, even as it …

We analyze the determinants and the long-run consequences of government interventions in the eurozone banking sector …, eventually, greater reliance on liquidity support from the European Central Bank …

We show that Eurozone bank risks during 2007-2012 can be understood as a "carry trade" behavior. Bank equity returns … load positively on peripheral (Greece, Ireland, Portugal, Spain and Italy, or GIPSI) bond returns and negatively on German … exploit government guarantees, arbitrage regulatory risk weights, and access central-bank funding, we find that this carry …

-way feedback between financial and sovereign credit risk using data on the credit default swaps (CDS) of the Eurozone countries for … widening of sovereign CDS spreads and narrowing of bank CDS spreads; however, post-bailouts there emerged a significant co …-movement between bank CDS and sovereign CDS, even after controlling for banks' equity performance, the latter being consistent with an …