the sources of bank heterogeneity, and what explains differences in individual banks’ responses to macroeconomic shocks … less while risk of riskier and domestic banks reacts more in response to house price shocks. -- FAVAR ; bank risk ; macro …The interplay between banks and the macroeconomy is of key importance for financial and economic stability. We analyze …

enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated … banks as providers of informational and of risk-diversification services. By eliminating exchange rate risks, the euro … on the risk taking of banks. …