supervisory data set collected by the European Central Bank that covers 26 large banks in the euro area. To assess the impact of …

analyzes the implications of the change from IAS 39 to IFRS 9 in the context of bank resilience. We shed light on two effects … bank resilience through lower capital levels. In the absence of archival data of IFRS 9 and their potential biases due to … the COVID-19 pandemic, we use the European bank stress test results as a natural experiment, in which all banks are …

What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer this question by studying … a model of financial intermediation with an endogenously determined probability of a bank run, using global games. As an … alternative to bank deposits, consumers can also store their wealth in remunerated CBDC issued by the central bank. Consistent …

equilibrium is characterized by a deep market with highly leveraged banks. The crisis times equilibrium is characterized by bank …

endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form … expectations about bank risk-taking and demand a return on deposits according to their risk. This creates strategic … of bank net worth and lead to a "gambling trap" with a persistent drop in investment and output. I bring the model to …

This paper studies optimal financial policy in a world where the financial sector can become excessively optimistic. I … decompose the welfare effects of bank capital regulation to demonstrate the effects of exuberance and its interaction with … evidence on the relationship between bank capital and risk-taking. Finally, I investigate the sensitivity of these insights …

This paper studies the long-run evolution of bank risk and its links to the macroeconomy. Using data for 17 advanced … economies, we show that the riskiness of bank assets declined materially between 1870 and 2016. But even though bank assets have … become safer, the losses on these assets are associated with increasingly large output gaps. Before 1945, bank asset returns …

question, I use firm-level data and firm-bank linkages to estimate the causal effect of an imported lending cut from a large … German bank on firms' capital structure and real outcomes. The estimates imply that for every 1 euro reduction in debt …