This paper uses the co-incidence of extreme shocks to banksu0092 risk to examine within country and across country … contagion among large EU banks. Banksu0092 risk is measured by the first difference of weekly distances to default and abnormal …

The paper analyses the relationship between deposit insurance, debt-holder monitoring, and risk taking. In a stylised … debt holders. We further find that credible limits to the safety net reduce risk taking of smaller banks with low charter …

experiment to examine the effect of government guarantees on bank risk taking, using a large data set of matched bank …/borrower information. The results suggest that banks whose government guarantee was removed reduced credit risk by cutting off the riskiest … adjusted their liabilities away from risk-sensitive debt instruments after the removal of the guarantee, while we do not …

(“ex ante”) versus during crisis times (“ex post”). During calm times, higher bail-out probabilities result in higher risk … banks with higher bail out probabilities tend to increase their risk taking less compared to banks that were ex ante …