World economies during the last century have witnessed a number of financial and banking crises resulting in tremendous loss in inflicted economies. The severity of these losses prompted Prudential authorities (World Bank, European Central Bank, International Monetary Fund -IMF and Central Banks...

This paper investigates the effectiveness of macroprudential policy to contain the systemic risk of European banks between 2000 and 2017. We use a new database (MaPPED) collected by experts at the ECB and national central banks with narrative information on a broad range of instruments which are...

This paper presents an approach to a macroprudential stress test for the euro area banking system, comprising the 91 largest euro area credit institutions across 19 countries. The approach involves modelling banks’ reactions to changing economic conditions. It also examines the effects of...