found that marginal rates at central bank auctions may increase if the share of troubled banks becomes too high relative to …

equilibrium is characterized by a deep market with highly leveraged banks. The crisis times equilibrium is characterized by bank …

paper shows that banks were unwilling to do so during the pandemic. To the contrary, banks engaged in forms of pro … Banks, we isolate credit supply effects and find that banks with little headroom above regulatory buffers reduced their … lending relative to other banks, also when controlling for a broad range of pandemic support measures. Firms' inability to …

This paper shows how the combined endogenous reaction of banks and investment funds to an exogenous shock can amplify … shock. Our contagion mechanism operates through a dual channel of liquidity and solvency risk. The joint modelling of banks … sector to our model for banks leads to additional losses through fire sales and a further depletion of banks' capital ratios …

. The increase in lending was not accompanied by excessive risk-taking, especially for banks with low intermediation margin …

proprietary ECB datasets, including an interbank network of 26 large euro area banks as well as their overlapping portfolios of …

of Diamond & Dybvig (1983), banks' default and contagion, and central bank funding. Our framework incorporates demand and … reduction (increase) in the ECB lending rate of its refinancing operations reduces (increases) the median of banks' default risk … across equilibria by around 50%, with substantial heterogeneity of this pass-through across time, banks and countries. …