We analyse the poisonous interaction between bank rescues, financial fragility and sovereign debt discounts. In our … sovereign debt discount. We introduce long term government debt, which gives rise to the possibility of capital losses on bank … intermediaries causes bond prices to drop triggering capital losses at the bank under intervention. This mechanism shows the limits …

This paper presents a new mechanism through which the geography of bank deposits increases financial fragility. We … document the within-bank geographic concentration of deposits -- 30% of bank deposits are concentrated in a single county. We … combine this within-bank geographic concentration of deposits with local natural-disaster-induced property damages to …

This paper studies the business cycle effects on the performance of commercial bank loan portfolios across major … related to expected losses in bank income statements). Our results indicate that while economic growth is the main driver of … equivalent to the median emerging market bank profitability; while a decline of more than 10 pp in growth implies significant …