conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area … empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and …

facilitate an assessment of the effectiveness of monetary policy. There is clear evidence that the European Central Bank's money …

We use administrative and supervisory data at the bank and loan level to investigate the impact of the introduction of … covered bonds on the composition of bank balance sheets and bank risk. Covered bonds, despite being collateralized by … mortgages, lead to a shift in bank lending from mortgages to corporate loans. Young and low-rated firms in particular receive …

facilitate an assessment of the effectiveness of monetary policy. There is clear evidence that the European Central Bank's money …

We contribute to the empirical literature on the impact of shocks to bank capital in the euro area by estimating a … economy, namely a demand shock and a shock to bank capital. The main findings of the paper are as follows: i) Impulse …-response analysis shows that in response to a shock to bank capital, banks boost capital ratios by reducing their relative exposure to …