willingness to repay debt and support distressed banks. Finally, we provide evidence that structural dependence in the system …

In this paper, we use detailed data on the sovereign debt holdings of all German banks to analyse the determinants of …, sovereign bond holdings are heterogeneous across banks. Larger, weakly capitalised banks and banks with a small depositor base … hold more sovereign bonds. Around 31% of all German banks hold no sovereign bonds at all. Second, the sensitivity of banks …

banks to straddle borders and expand their business to other European countries. We use a unique hand-collected dataset with … cross-border loans for the 61 largest European banks to study the impact cross-border banking has on the risk-return profile … of an individual bank. Our results show that cross-border banking decreases banks' risk, by lowering the insolvency risk …