This study develops a model for predicting distress events among large banks. We conjecture that a bailout possibility induces different behaviors among small and large banks and therefore separate models may be need for early warning models. We indeed find that a failure prediction model for...

We examine the effect of national culture on the vulnerability of banks to common shocks, which has not been explored previously, by analyzing the stock market volatility of major European Banks during the Covid-19 pandemic. Focusing on differences in uncertainty avoidance and individualism...