How does a bank react when a substantial share of its borrowers suffer a large negative shock? To answer this question … we exploit the 2014 collapse of energy prices using the universe of Mexican commercial bank loans. We show that, after …, relaxing credit margins to their larger debtors in the sector. An increase of one standard deviation in a bank's ex …

expectations for NPLs are found to be effective in reducing banks' NPLs. The phase-in of the policies can temporarily reduce bank …

Measures of Sovereign and Bank Risk show occasional bouts of increased correlation, setting the stage for vicious and …-area countries. The results show that Sovereign Risk feeds back into Bank Risk more strongly than vice versa. Countries with … effects from Sovereign Risk into Bank Risk. In the opposite direction, in countries where banks fund their activities with …

threshold on the pricing process of a bank assets'. A traceable form of the contingent convertible bond is analyzed to find a …

sovereign risk affects banking risk (and vice versa), presents some new evidence on bank-sovereign links, and discusses policy …

in line with the economic conditions they face. Bank responses feed back to the macroeconomic environment affecting …

results highlight the importance of the starting level of bank capital, bank asset quality, and banks' adjustments for the …

We study the impact of higher bank capital buffers, namely of the Other Systemically Important Institu- tions (O …