We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …

. We show that ECB communications at the press conference were crucial for the market response and that bank health … some persistence. Other bank characteristics, in particular bank size, leverage and NPL ratios, amplified the impact of … monetary policy shocks on banks. After the OMT announcement, we detect that the response of bank stocks to monetary policy …

period. In addition, we observe that Total Factor Productivity growth for the median euro area bank decreased from around 2 … bank's efforts in areas such as rationalisation of branches, digitalisation of business processes and possibly mergers and …