Allen, Franklin; Covi, Giovanni; Gu, Xian; Kowalewski, Oskar - 2020
argue that the existing differences in interbank market usage can be explained by the trust of the market participants in …. Specifically, banks originating from a country that has lower level of trust tend to have lower interbank borrowing. Using a … proprietary dataset on bilateral exposures, we investigate the Euro Area interbank network and find the effect of trust relies on …