This paper investigates the relationship between bank funding costs and solvency for a large sample of euro area banks … relationship between bank solvency, on the one hand, and senior bond yields, term deposit rates and overnight deposit rates, on the … other. The analysis finds a significant negative relationship between bank solvency and the different types of funding costs …

We empirically analyse the relationship between longer term central bank liquidity support and banks' balance sheet …

We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and …

We investigate the impact of macroprudential capital requirements on bank lending behaviour across economic sectors … to central bank funding. These results have important policy implications as they provide evidence on the impact of …

How do capital and liquidity buffers affect the evolution of bank loans in periods of financial and economic distress … relates macroeconomic aggregates to individual bank balance sheet items and interest rates. We find that banks with high … liquidity buffers also affect bank responses to monetary policy shocks. High bank capitalisation reduces the degree to which …

explains the link between the liquidity premium and spreads. We present a theory of endogenous bank fragility arising from a … coordination friction among bank creditors. The theory's implications reduce to a single constraint on banks, which is embedded in … that reduce bank net worth exacerbate the coordination friction. In response, banks lend less and demand more liquid assets …

signal on bank project quality, short-term wholesale financiers have lower incentives to conduct costly monitoring, and …