Rapid and large deposit outflows from banks have regained attention in the context of the March 2023 demises of Credit … Suisse, SVB and other regional US banks. Moreover, the possible introduction of CBDC or a marked success of stablecoins are … competition between banks will inevitably stay, and bank balance sheet management and liquidity regulation need to accept the new …

financial system to minimize potential contagion losses. Building on ideas from combinatorial optimization tailored to … controlling contagion in case of complete information about an interbank network, we augment the model with three plausible types … of fire sale mechanisms. We then demonstrate the power of the methodology on the euro area banking system based on a …

partial equilibrium model of euro area funds and banks calibrated over the period between 2008 and 2017. An initial shock to … yields causes funds to sell assets to address investor redemptions, while both banks and funds sell assets to keep their … banks. However, funds' relative contribution has risen due to their increased assets under management and banks' lower …

We evaluate the effects of contagion and common exposure on banks' capital through a regression design inspired by the … on granular balance sheet and interbank exposure data of the Canadian banking market. First, we document that contagion … structural VAR literature and derived from the balance sheet identity. Contagion can occur through direct exposures, fire sales …

The analysis of contagion in financial networks has primarily focused on transmission channels operating through direct … linkages. This paper develops a model of financial contagion in the interbank market featuring both direct and indirect … bilateral exposures, constructed manually from a supervisory dataset reported by the largest euro area banks. We find that while …

depositors and premiums raised from banks. Premiums contribute to a deposit insurance fund that lowers taxpayers' resolution cost …

, some price and risk parameters, including the funding cost spread and the banks'probability of default. The structural …

critical in order for banking system regulators to adequately assess run risk and resilience. By bringing a time series of SVB … designation of held- to-maturity assets and quantify banks' ability to hold these assets without resorting to remarking. By …

and demonstrate how a combined endogenous reactions of banks, investment funds and insurance companies can further amplify … threshold, insurance companies play a crucial role in mitigating both direct and indirect contagion. …

the tools of network analysis it is possible to study how contagion spreads between banks and what is the probability and … with an active interbank market. Banks exchange funds one another generating a complex web of interbanking relations. With … understand systemic risk and to assess the stability of the banking system. In extreme scenarios, the system may experience a …