Over the past years, several countries around the world have adopted a system of prudential prompt corrective action (PCA). The European Union countries are being encouraged to adopt PCA by policy analysts who explicitly call for its adoption. To date, most of the discussion on PCA has focused...

In this paper, various econometric methodologies are used to attempt to assess whether the levy on lending introduced by Law 38/2022 has since had a differential effect on institutions’ performance. This is an extremely complex exercise, since, added to the inherent difficulty in identifying...