Gropp, Reint; Koetter, Michael; McShane, William - Leibniz-Institut für Wirtschaftsforschung Halle - 2020
We conduct stress tests for a large sample of German banks across different recoveries from the Corona recession. We find that, depending on how quickly the economy recovers, between 6% to 28% of banks could become distressed from defaulting corporate borrowers alone. Many of these banks are...
