We study the vulnerability of 130 banks directly supervised by the European Central Bank's Single Supervisory Mechanism … healthier segments of the economy. But instead of emphasising bank recapitalisation, as in past years, we believe the task is to …

; ii) the impact of regulation; and iii) how bank closures exacerbated the post-war bust. The boom encouraged new bank … bank portfolios, while higher minimum capital requirements dampened the effects. Banks that responded most aggressively to … the asset boom had a higher probability of closing in the bust, and counties with more bank closures experienced larger …