This paper investigates whether the design of the banking supervisory architecture impacts sovereign risk. Exploiting the implementation of the Single Supervisory Mechanism (SSM) in Europe, we find evidence that sovereign risk – measured by sovereign ratings – is lower after the largest...

Past bank-firm lending relationships affect the probability of choosing a bank as debt-underwriter. However, there is no evidence regarding how these relationships may influence the decision to syndicate the issuance; nor is there evidence of their effect on the syndicate formation. Using a sample...

In this paper, we explore the effects of bank bailouts on competition in the underwriting business. Using all the bailout measures on underwriters active in the European corporate bond markets from 2006–2013, we find that banks with large market shares (reputable banks) suffer market share...

Reducing interest rates below zero may be justified on theoretical grounds while, in practice, it is shown to create a number of distortions and malfunctions in several dimensions of banking and financial markets, which in turn may affect the whole economy. This paper surveys international...