account and interest rate. Examining the VAR impulse responses for Germany, Italy and Spain we find that investment shocks and …

. Using this framework, we show conditions under which idiosyncratic shocks to bank lending can generate aggregate … sector for many countries is indeed granular, as the right tail of the bank size distribution follows a power law. We then … concentration is associated with a positive and significant relationship between bank-level credit growth and aggregate growth of …

We investigate, in the case of Germany, the positive correlation between the cyclical components of the corporate …

econometric issues are addressed including estimation of the number of dynamic factors and tests for the factor restrictions …

members - Germany, France, Italy and Spain. For that purpose we use Bayesian VARs with identification based on a combination …

We contribute to the empirical literature on the impact of shocks to bank capital in the euro area by estimating a … economy, namely a demand shock and a shock to bank capital. The main findings of the paper are as follows: i) Impulse …-response analysis shows that in response to a shock to bank capital, banks boost capital ratios by reducing their relative exposure to …