, in the context of the eurozone periphery, the increase in domestic government bond holdings, the reduction of bank credit …

financial crisis of 2007–2009, two important issues require further attention. First, although bank capital ratios have been … system. Second, bank liquidity requirements may have become too complex and could also have unintented and unpredictable … interaction effects with bank capital requirements. …

contract their balance sheets. These bank responses generate externalities that propagate in the form of macro … macro-financial feedback loops can significantly affect macroeconomic outcomes and bank-specific stress tests results. The … heterogeneity in bank lending responses matters: it determines how each bank fares under adverse conditions and the external effects …