crisis. We propose a macro-finance model featuring both traditional and shadow banks subject to funding risk. When banks are … dynamics. Increasing the supply of reserves reduces liquidity risk in the traditional banking sector, but fails to reach the …

European banks. In this paper, we evaluate the possible effects of these constraints on risk and diversification in the … analysis. We then analyse the risk and diversification in the sovereign bond portfolios of the largest European banks and … country. Finally, we evaluate the effect of diversification requirements on the tail risk of sovereign bond portfolios. Under …

We study how monetary policy and risk shocks affect asset prices in the US, the euro area, and Japan, differentiating …. Communication shocks from the US spill over to risk in the euro area and vice versa, but traditional US shocks show no spillover … effects to risk. Both monetary policy and communication shocks spill over to stocks, with euro area information spillovers …

expectations about bank risk-taking and demand a return on deposits according to their risk. This creates strategic … alleviating banks’ funding conditions and strengthening risk-taking incentives. Liquidity provision to banks may perpetuate …

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 … concentration and credit risk exposure. …