their interbank exposures. The micro-founded framework allows inter alia for endogenous bank defaults and bank capital … requirements. In addition, we introduce a central bank who intervenes directly in the interbank market through liquidity injections … the remaining structures show a non-negligible shock propagation mechanism. Finally, we show that central bank …

on a European level. Following De Nicolo and Kwast (2001), mean rolling-window correlations between bank stock returns …

conditional correlations between European bank stock indices. These correlations are used as an indication for the …

on a European level. Following De Nicolo and Kwast (2001), mean rolling-window correlations between bank stock returns …

assess the relative importance of cross-border bank spillovers as compared to domestic bank spillovers. The results suggest …

enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated …

from bank defaults across the member countries. At the same time, however, the banking union will resort to bank bailouts … more often, distorting risk incentives of banks. For low bank liquidation costs, the net welfare effect of a banking union …

incentives, risk management models and procedures, conflicts of interest and bank strategies. Their perspectives are quite …