This paper investigates the relationship between bank funding costs and solvency for a large sample of euro area banks …. Among the deposit rates, the interest rates of the overnight deposits are the least sensitive. Banks' asset quality …

provisions tend to be more procyclical at larger and better capitalized banks. The procyclicality of loan loss provisions can …

We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit … the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as … higher returns. Effects are stronger for less capitalized banks, private sector (financial and non-financial) securities and …

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 …

This paper studies the bilateral drivers of mergers and acquisitions (M&As) between European banks. Two findings … document that banks use M&A as a device to leverage their expertise rather than to diversify. (i) Following the literature on … matrimonial matching by using a binary logit model, the paper examines how the structure of acquiring banks in terms of …

Can banks trade credit default swaps (CDSs) referenced on their current corporate clients at competitive prices, or are … banks penalized for potentially holding private information? To answer this question we merge CDS trades reported under the … that the same dealer offers to banks and to other investors. We find that banks lending to a corporation purchase CDSs on …

This paper studies the impact of voluntary climate commitments by banks on their lending activity. We use … increased participation by the largest banks and banks with the most pre-existing exposure to high-polluting industries. Setting … priority for decarbonization. However, climate-aligned banks do not change their lending or loan pricing differentially …

many banks have a MRP below one, indicating that those banks have little incentive to enhance their efficiency to increase …-conduct performance, and 'quiet life' hypotheses and to detect comparatively weak non-competitive banks. Our new measure of firm …

particular relevance for the banking system and individual banks and searches for scenarios that could push them towards their …