Since the European debt crisis economists and politicians discuss intensively the sovereign-bank nexus. The high … exposure on bank stability. This paper provides a new way to use European stress test data to study this relationship. In … addition, we explore the effect on a bank’s probability of default if the existing capital requirement privilege for EU …

This paper analyzes the causal relationship between institutional diversity in domestic banking sectors and bank … stability. We use a large bank- and country-level unbalanced panel data set covering the EU member states' banking sectors … of institutional diversity in the domestic banking sector positively affects bank stability. The positive relationship …

, bank intermediation dominates. However, fragile, capital-constrained banks also meant a curtailed supply of funds, an issue … especially for bank-dependent small or medium-sized firms (SMEs). Hence, it appears more than evident that easing the access to … euro area economies, those worst hit. There might, however, be structural (economic) reasons why SMEs prefer (local) bank …

-out unit, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current market value … recapitalize the good bank by taking an equity stake in it. In extreme cases, this would mean a takeover of the bank by the …. A clear emphasis that the government stake is temporary would also be necessary. The government would cover the bad bank …

-out unit, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current market value … recapitalize the good bank by taking an equity stake in it. In extreme cases, this would mean a takeover of the bank by the …. A clear emphasis that the government stake is temporary would also be necessary. The government would cover the bad bank …