Credit risk associated with interbank lending may lead to domino effects, where the failure of one bank results in the … failure of other banks not directly affected by the initial shock. Recent work in economic theory shows that this risk of … bilateral credit relationships for the German banking system and test whether the breakdown of a single bank can lead to …

unit, a so-called bad bank. This plan effectively addresses three key challenges. It provides for the transparent removal …

Credit risk associated with interbank lending may lead to domino effects, where the failure of one bank results in the … failure of other banks not directly affected by the initial shock. Recent work in economic theory shows that this risk of … bilateral credit relationships for the German banking system and test whether the breakdown of a single bank can lead to …

-out unit, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current market value … recapitalize the good bank by taking an equity stake in it. In extreme cases, this would mean a takeover of the bank by the …. A clear emphasis that the government stake is temporary would also be necessary. The government would cover the bad bank …

How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …

How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …