The establishment of the European Banking Union in 2014 created a large banking market in Europe, making it easier for banks to straddle borders and expand their business to other European countries. We use a unique hand-collected dataset with cross-border loans for the 61 largest European banks...

We study the dependence between the downside risk of European banks and insurers. Since the downside risk of banks and insurers differs, an interesting question from a supervisory point of view is the risk reduction that derives from diversification within large banks and financial...