We show that lender of the last resort (LOLR) policy contributes to higher bank interconnectedness and systemic risk … central bank haircuts. LOLR increases interconnectedness by incentivizing banks to pledge higher haircut gap bonds, especially … issued by similar banks and by systemically important banks. LOLR also exacerbates cross-pledging of bank bonds. Higher …

to individual banks in the Merton tradition (1974) as a combination put option for the deep tail of bank losses and a … knock-in stop-loss call on bank assets. This model expresses the value of taxpayer loss exposure from a string of defaults … the face value of the debt of the entire sector. We conceive of an individual bank's systemic risk as its contribution to …

evolution of bank credit. We use a unique loanlevel dataset comprising multiple credit registers from several European countries … with borrower and bank-level characteristics and with indicators summarising macroprudential and monetary policy actions …. We find that monetary policy easing increases both bank lending and lending to riskier borrowers, especially when there …

This paper analyzes the impact of public credit guarantee schemes on the allocation and performance of bank credit … outstanding with the bank before the shock. This effect is more pronounced for risky firms and for firms in more pandemic … firm-bank level, with the share and amount of nonguaranteed (private) credit declining for firms that obtain guaranteed …

evolution of bank credit. We use a unique loan-level dataset comprising multiple credit registers from several European … with borrower and bank-level characteristics and with indicators summarising macroprudential and monetary policy actions …. We find that monetary policy easing increases both bank lending and lending to riskier borrowers, especially when there …

explain about two-thirds of the variation of bank capitalization over the business cycle. We estimate that provisioning …