We classify a large sample of banks according to the geographic diversification of their international syndicated loan portfolio. Our results show that diversified banks maintain higher loan supply during banking crises in borrower countries. The positive loan supply effects lead to higher...

Short-term financing, e.g., asset-backed commercial paper (ABCP) or repurchase agreements (repo), was prevalent prior to the 2007-2008 financial crises. Banks funded by short-term debts, however, are exposed to rollover risk as the banks are unable to raise sufficient funds to finance their...

This paper provides robust evidence that the home country identity of a foreign-owned bank is an important consideration for credit growth. Among the set of foreign-owned banks we find significant differences in loan growth between banks from advanced than emerging source countries during the...

Using a DSGE model with nominal wage rigidity, we investigate two scenarios for the Italian economy. The first considers sustained policy commitment to reform. The results indicate the possibility of 'growing out of bad initial conditions', if fiscal consolidation is combined with a program for...

Cross-border bank credit is dominated by a small number of very sizeable links between banks in one country and borrowers in another. The largest-sized cross-border banking links are mainly between major advanced economies. Concentration increased up until the Great Financial Crisis (GFC) and...

This study examines the multi-scale impact of financial, newspaper, and Twitter-based uncertainty on bank stock returns in the United States. By combining Principal Component Analysis and Discrete Wavelet Transformation, we estimate directional spillover and causality for different time...

We investigate how syndicate structure is influenced by the characteristics of the banking environment, such as banking market structure, financial development, banking regulation and supervision, and legal risk. The results of a cross‐country analysis performed on a sample of 15,586...

The global financial crisis has placed the spotlight squarely on bank stress tests. Stress tests conducted in the lead-up to the crisis, including those by IMF staff, were not always able to identify the right risks and vulnerabilities. Since then, IMF staff has developed more robust stress...

The German banking market is notorious for its low degree of market penetration by foreign financial institutions, suggesting that markets serviced by domestic and foreign banks are segmented. This paper employs a number of tests to determine whether activities of domestic and foreign banks are...