The introduction of bail-in resolution powers to impose the costs of a large bank's failure on its creditors (rather … fundamental conundrum remains in the legal regime: it is unclear who should hold bank capital that is subject to bail-in. This …

Measures of Sovereign and Bank Risk show occasional bouts of increased correlation, setting the stage for vicious and …-area countries. The results show that Sovereign Risk feeds back into Bank Risk more strongly than vice versa. Countries with … effects from Sovereign Risk into Bank Risk. In the opposite direction, in countries where banks fund their activities with …

Measures of sovereign and bank risk show occasional bouts of increased correlation, setting the stage for vicious and … countries. The results show that sovereign risk feeds back into bank risk more strongly than vice versa. Countries with … effects from sovereign risk into bank risk. In the opposite direction, in countries where banks fund their activities with …

We propose a simple model of the sovereign-bank diabolic loop, and establish four results. First, the diabolic loop can …