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How excessive is banks' maturity transformation?

Segura, Anatoli; Suárez, Javier - 2016

We quantify the gains from regulating maturity transformation in a model of banks which finance long-term assets with non-tradable debt. Banks choose the amount and maturity of their debt trading off investors' preference for short maturities with the risk of systemic crises. Pecuniary...

Persistent link: https://www.econbiz.de/10011974655

What drives sovereign debt portfolios of banks in a crisis context?

Lamas, Matías; Mencía, Javier - 2019

particular, we show that being a weakly capitalized bank is not related to higher holdings of domestic sovereign debt. While a … strong link is present between central bank liquidity support and sovereign holdings, opportunistic strategies or reach … advantage of their higher risk-bearing capacity to gain exposure (via central bank liquidity) to the set of riskier sovereign …

Persistent link: https://www.econbiz.de/10011978836

Retrenchment of euro area banks and international banking models

Argimón, Isabel; Fernández Ortiz, Elena; … - 2020

In this paper, we analyze the importance of international banking models, along the operational and the funding dimensions, for the decline in international positions of European banks since the crisis. Using BIS Consolidated Banking Statistics, we find that the multinational model (higher...

Persistent link: https://www.econbiz.de/10012312194

Bank exposures and sovereign stress transmission

Altavilla, Carlo; Pagano, Marco; Simonelli, Saverio - 2016

Using novel monthly data for 226 euro-area banks from 2007 to 2015, we investigate the causes and effects of banks' sovereign exposures during and after the euro crisis. First, in the vulnerable countries, the publicly owned, recently bailed out and less strongly capitalized banks reacted to...

Persistent link: https://www.econbiz.de/10011974892

Fear the walking dead? : zombie firms in the euro area and their effect on healthy firms' credit conditions

Havemeister, Lea Katharina; Horn, Kristian - 2023

Zombie firms may adversely impact healthy firms through several transmission channels. Besides real spillover effects on productivity or investment, zombies may also cause negative financial spillover effects, where zombies receive credit at more favourable conditions than healthy firms. We...

Persistent link: https://www.econbiz.de/10014309045

ESBies : safety in the tranches

Brunnermeier, Markus Konrad; Langfield, Sam; Pagano, Marco - 2016 - This draft: September, 2016

The euro crisis was fueled by the diabolic loop between sovereign risk and bank risk, coupled with cross-border flight …

Persistent link: https://www.econbiz.de/10011975194

Sovereign default and the euro

Whelan, Karl - 2013

The introduction of the euro meant that countries with sovereign debt problems could not use monetisation and devaluation as a way to prevent default. The institutional structures of the euro were also widely thought to prevent a country in difficulties being bailed out by other euro members or...

Persistent link: https://www.econbiz.de/10009774847

The future for Eurozone financial stability policy

Whelan, Karl - 2010

exist to manage sovereign defaults in an orderly manner, not to prevent them altogether. Bank supervisors also need to …

Persistent link: https://www.econbiz.de/10009729283

Improving the Eurosystem for old and new members

McCarthy, Colm - 2012

Persistent link: https://www.econbiz.de/10009733135

In search of the Euro area fiscal stance

Albonico, Alice; Tirelli, Patrizio; Paccagnini, Alessia - 2016

This paper investigates the role of fiscal policies over the aggregate EMU business cycle. Previous studies, based on the assumption of non-separability between public and private consumption, obtain a large public consumption multiplier, a small fraction of non-Ricardian households and,...

Persistent link: https://www.econbiz.de/10011529025