The crisis has underlined the strong interdependence between the euro-area banking and sovereign crises. To understand … required. The data shows that at the start of the crisis, most continental euro-area countries were characterised by the large …. Consequently, concern about sovereign solvency was bound to have major consequences for banks. The structural vulnerability of euro …

mitigated funding needs and reduced interbank stress, and has had a significant impact on sovereign bond yields in southern euro … particularly in the southern euro area. Underlying structural problems relating to banks, the macroeconomic adjustment and the euro …