predictor of GDP. We provide evidence linking this increasing connectedness between banks and the macroeconomy to secular …

existing models on contagion via interbank credit, external shocks to banks often spread to other banks only in case of a …: First, the probability of default (PD) of those banks directly affected by some shock increases. This increases the expected … loss of the credit portfolios of the initially affected banks’ counterparties, thereby reducing the counterparties …

were the private banks of the hardest-hit sovereigns. They were rapidly followed by the rest of the Euro-Zone's banks as a … in a timely manner is hardly an easy task, as banks are not required to disclose it. Building on the efficient market … hypothesis in the presence of informed traders, we tested the sensitivity of each of the largest Euro-Zone private banks' CDSs to …

-SII) buffer, on banks' lending and risk-taking behaviour. The O-SII buffer is a macroprudential policy aiming to increase banks … therefore promote the build-up (or deleverage) of banks' risk-taking. Since the end of 2015, national authorities, under the EBA … framework, started to identify banks as O-SII and impose additional capital buffers. The identifica- tion of the O-SII is mainly …

largest euro area credit institutions across 19 countries. The approach involves modelling banks'reactions to changing … acknowledging a broad set of interactions and interdependencies between banks, other market participants, and the real economy. Our … results highlight the importance of the starting level of bank capital, bank asset quality, and banks' adjustments for the …