stochastic policy mix lead to suboptimal allocations if banks do not internalize insolvency costs. The policy of forbearance may … make banks internalizing such costs and improves the efficiency of intermediation. …

risks should be based on a framework that accounts for the various linkages between the banks and the other relevant … financial market actors, notably investment funds. Given that the bulk of the banks in Luxembourg are affiliates of foreign bank … groups, the authorities should seek clear procedures that govern the (cross-border) resolution of large banks in bad times …

for systemically important banks, improving banks’ resolvability and fine-tuning the use of countercyclical measures. Data …

-owned banks. The levels of non-performing loans and capital adequacy ratios compare poorly in international perspective and may … for the two main stateowned banks in mid-2012. To foster the credibility of the new tests, the main results and underlying … by ring-fencing impaired assets, which would create conditions for an orderly resolution of non-viable banks and a rapid …