In a Black-Scholes-Merton model of single name default, instability could be seen as the level of volatility that would trigger default, everything else equal. At a portfolio level, for instance comprising all credit liabilities of the corporate sector, potential for instability could be...

The "financing gap" measures the need of external funds for the corporate sector as the difference between gross "capital formation" and "savings". Taking advantage of the recent release of data in the ESA95 standard, this paper assembles a set of stylized facts about the corporate financing gap...

This paper extends the Schure and Wagenvoort (1999) study, which considers economies of scale and efficiency in European banking, in a number of directions. Firstly, we introduce what we believe to be important improvements to estimating efficiency. Secondly, we examine more closely the...

We develop distress prediction models for non-financial small and medium sized enterprises (SMEs) using a dataset from eight European countries over the period 2000-2009. We examine idiosyncratic and systematic covariates and find that macro conditions and bankruptcy codes add predictive power...

While notable differences exist among countries and time periods, internal finance is the principal source of funds for the corporate sector in the main European economies. The importance of internal finance has been increasing through the mid 1990s, in coincidence with a slowdown in investment....

Long-term development finance provided by Multilateral Development Banks (MDBs) is key to advancing the United Nations 2015 Sustainable Development Goals. However, MDBs are constrained in their lending by the availability of capital. This paper argues that Risk Transfer, as a complement to...