We propose a simple model that captures the link between bank and sovereign credit risk. It allows evaluating policy … government debt raises sovereign risk and in turn generates potential bank losses via their (sovereign) bond holdings. Hence, an … framework based on detailed actual bank balance sheets and test the model on 35 large EU banking groups, across 7 European …

Euro area governments have committed to break the doom loop between bank risk and sovereign risk. But policymakers have …

This paper analyzes the effect of bank recapitalizations on lending, funding and asset quality of European banks …

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