Although recent research shows that the euro has spurred cross-border financial integration, the exact mechanisms … remain unknown. We investigate the underlying channels of the euro’s effect on financial integration using data on bilateral … euro’s impact on financial integration is primarily driven by eliminating the currency risk. Legislative …

Portuguese loan-level data. We find that banks that rely more on interbank borrowing before the crisis decrease their credit … supply more during the crisis. The credit supply reduction is stronger for firms that are smaller, with weaker banking …

Portuguese loan-level data. We find that banks that rely more on interbank borrowing before the crisis decrease their credit … supply more during the crisis. The credit supply reduction is stronger for firms that are smaller, with weaker banking …

crisis shocks as well as the main Eurosystem non-standard monetary policy measures. The robust results imply that the crisis … stronger in the sovereign debt crisis. Moreover, the interbank market - unlike other credit markets - allows to exploit the … morning for the same borrower. This price dispersion increases massively with the crisis, and even more for riskier borrowers …

Using a unique dataset of the Euro area and the U.S. bank lending standards, we find that low (monetary policy) short …-term interest rates do not soften lending standards. Finally, countries with softer lending standards before the crisis related to … origins of the crisis and have important policy implications. …