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financial integration in the market for bank liabilities. I focus on news about economic fundamentals as the key source of … recent Eurozone crisis. Bank balance sheets amplify and propagate fluctuations through three channels when leverage … non-tradable sector assets alter bank lending to tradable sector firms (intra-national spillover channel). Third, domestic …
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This paper studies the cyclical properties of real GDP, house prices, credit, and nominal liquid financial assets in 17 EU countries, by applying several methods to extract cycles. The estimates confirm earlier findings of large medium-term cycles in credit volumes and house prices. GDP appears...
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I study the relation between shadow banking and financial stability in an economy in which banks are susceptible to self-fulfilling runs and in which government-backed deposit insurance is limited. Shadow banks issue only uninsured deposits while commercial banks issue both insured and uninsured...
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economy and compares abilities of market-based and bank-based financial systems in processing the shock. Unregulated banking …
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