predictor of GDP. We provide evidence linking this increasing connectedness between banks and the macroeconomy to secular …

We study the relationship between banks' size and risk-taking in the context of supranational banking supervision …-big-to-fail effect, we find an inverse relationship between banks' size and non-performing loan growth for a sample of European banks …-up rather than incentives alignment among the supervisors and the banks. …

area banks with that of the euro area economies. It reflects banks' heterogeneity by replicating the structure of their … balance sheets and profit and loss accounts. In the model, banks adjust their assets, interest rates, and profit distribution …

to better discriminate between banks. In this study, using an event study approach, we explore how market participants … performing banks in the stress test. Finally, we provide some evidence that also sovereign funding costs were affected in the …

Euro area governments have committed to break the doom loop between banks and sovereigns. But policymakers disagree on … reallocation by banks in response to regulatory reform. Simulations highlight a tension between concentration and credit risk in … opportunity set to include an area-wide low-risk asset. By reinvesting into such an asset, banks would reduce both their …

-SII) buffer, on banks' lending and risk-taking behaviour. The O-SII buffer is a macroprudential policy aiming to increase banks … therefore promote the build-up (or deleverage) of banks' risk-taking. Since the end of 2015, national authorities, under the EBA … framework, started to identify banks as O-SII and impose additional capital buffers. The identifica- tion of the O-SII is mainly …

interconnectedness, via a network of interbank loans, banks' loans to other corporate and retail clients, and securities holdings. The … supervisory data set collected by the European Central Bank that covers 26 large banks in the euro area. To assess the impact of … contagion, we apply a structural valuation model NEVA (Barucca et al., 2016a), in which common shocks to banks' external assets …

This paper presents a novel approach to investigate and model the network of euro area banks' large exposures within … contagion and vulnerability indices measuring respectively the systemic importance of banks and their degree of fragility …