framework were more likely to require public support during the crisis. We instrument some characteristics of bank balance … sheets with these prudential indicators to investigate how they affect bank resilience. The share of non-interest income …

significance. Our results do not point to a major role of newly introduced bank levies in explaining cross-border banking …

dimensionality reduction optimally, given the nature of our dataset which features a large number of dimensions for each bank ('fat …

set available at the European Central Bank related to the 2016 EU-wide stress test, this paper presents novel empirical … evidence that supervisory scrutiny associated to stress testing has a disciplining effect on bank risk. We ftnd that banks that …

of bank failures. We find that riskadjusted premiums reduce moral hazard, enabling the policymaker to increase deposit … insurance coverage by 3 percentage points and decrease the share of expected annual bank failures from 0.66% to 0.16%. The model …

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets … that banks have a common regulator. In our model, the failure of one bank can undermine the public's confidence in the … forbearance to the initially failing bank in the hope that it - and hence other vulnerable banks - survives. By contrast, public …

Using a unique dataset of the Euro area and the U.S. bank lending standards, we find that low (monetary policy) short … securitization activity, weak supervision for bank capital and too low for too long monetary policy rates. Conversely, low long … origins of the crisis and have important policy implications. - Lending standards ; monetary policy ; securitization ; bank …

how to treat sovereign exposures in bank regulation. Our contribution is to model endogenous sovereign portfolio …