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

to promote bank soundness and sustained lending over the cycle. First, some evidence on bank dividends and earnings in … generates bank equity and credit supply volatility. Then, a DSGE model with key financial frictions and a banking sector is … by means of less volatile bank retained earnings, (ii) they induce welfare gains associated to a Basel III-type of …

. Second, higher bank capital requirements may aggravate contagion since they may incentivise banks to hold similar assets, and …

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

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

The banking sector in the United Kingdom (UK) was deeply affected by the crisis. Bank credit has collapsed reflecting … to improve access to finance united under the roof of the British Business Bank. Further structural reforms are needed to …

choices when determining their own. This effect is asymmetric and not present in bank capital choices. Importantly, I find …