This paper analyzes the effect of bank recapitalizations on lending, funding and asset quality of European banks …

. Second, higher bank capital requirements may aggravate contagion since they may incentivise banks to hold similar assets, and …

optimally tilt their government bond portfolio toward domestic securities, linking their destiny to that of the sovereign. If …, in the context of the eurozone periphery, the increase in domestic government bond holdings, the reduction of bank credit …

connectivity may destabilize the financial system via the bank-run channel. This is because it decreases the risk-sharing benefits … of interbank connectivity. A bank-run model features two islands that are connected via a long term debt claim. Varying … the size of this claim (interbank connectivity), I study how the decision to 'run on the bank' is affected. I run a …