, especially when a bank receives a public bailout. However, the withdrawal risk for a distressed bank is mitigated by strong bank … non-distressed bank, or which maintain a credit relationship with a distressed bank are significantly less likely to … well-established client relationships for the stability of bank funding. …

In this paper, we examine how the institutional design affects the outcome of bank bailout decisions. In the German … savings bank sector, distress events can be resolved by local politicians or a state-level association. We show that decisions … by local politicians with close links to the bank are distorted by personal considerations: While distress events per se …

2014, the largest banks in the Euro Area are under the direct supervision of the European Central Bank (ECB). In this … listed European banks to measure each bank's contribution to systemic risk (SRISK) at the national and at the Euro Area level … heterogeneity both across countries and banks. Second, we explore the drivers of systemic risk. A bank s contribution to systemic …

This paper examines the treatment of sovereign debt exposure within the Basel framework and measures the impact of bank … regulation on the demand of Monetary Financial Institutions (MFI) for marketable sovereign debt. Our results suggest that bank …

alternative ways. Financial intermediaries can operate either as commercial bank, which is regulated by an agency that also … insures its deposits, or as uninsured 'shadow bank' whose leverage is constrained by the risk-aversion of investors. The …