options to address this 'doom loop' in which the government may need to raise debt to recapitalise banks, and an increase in … bias in banks sovereign bond holdings by reducing excessive exposure to domestic sovereigns has only limited benefit in …

College) gave the SUERF 2015 Annual Lecture on Capital and Banks. The conference focused on core aspects of banking reform …

large banks headquartered in 13 countries. Eight of these countries belong to the European Union, seven belong to the … the relationships across countries and even across banks within the same country. Also, higher correlations between bank … and sovereign risk are found in countries in which the ratio of the assets of banks relative to their home country's GDP …

Using a comprehensive dataset from German banks, we document the usage of sovereign credit default swaps (CDS) during … the European sovereign debt crisis of 2008-2013. Banks used the sovereign CDS market to extend, rather than hedge, their … associated with protection selling. The findings are driven by the actions of a few non-dealer banks which sold CDS protection …