European housing markets are at a turning point as the cost-of-living crisis has eroded real incomes and the surge in interest rates has made borrowers more vulnerable to financial distress. This paper aims to (i) shed light on the risks in European housing markets, (ii) quantify household...

Housing market developments are in the spotlight in Europe. Over-stretched valuations amid tightening financial conditions and a cost-of-living crisis have increased risks of a sustained downturn and exposed challenging trade-offs for macroprudential policy between ensuring financial system...

Since ancient times, various psychological techniques such as fear and terror have been deliberately used by entities as non-combat weapons to bring about the enemy’s defeat. An effective use of fear as a weapon can sometimes achieve more than an arsenal of weapons of mass destruction. The...

Turks have been around for several millennia; lived freely as nomadic Turkic tribes, established great empires, but now continues its humble existence as the Republic of Turkey that Atatürk created a century ago from the ashes of the abolished Ottoman Empire. Same as its ancestors, Turkey has...

Equity-linked notes are flexible financial products that give investors favorable capital treatment. The payoff of a note depends on the performance of a basket of equities or indices averaged over a certain period, but is bounced below by a guaranteed amount. This article presents a new model...

Facebook’s claim of Libra blockchain as a decentralized peer-to-peer electronic cash system is a blunt lie; if Facebook overcomes the massive regulatory hurdle and receives appropriate approvals, Libra will initially start off as a decentralized permissioned blockchain with a trusted-third...

Zombie firms may adversely impact healthy firms through several transmission channels. Besides real spillover effects on productivity or investment, zombies may also cause negative financial spillover effects, where zombies receive credit at more favourable conditions than healthy firms. We...

The study investigates what causes non-performing loans (NPLs) in developed and developing countries. To identify the relationship between bank-specific, macroeconomic determinants, and institutional environment non-performing loans on country-level panel data of Developing nations for the...

Using large panel data of public and private firms, this paper dissects the growth of bond financing in the Euro Area through the lens of the cross-section of issuers. In recent years, the composition of bond issuers has shifted, with the entry of many smaller and riskier issuers. New issuers...

Rationale The 2015 Paris Agreement is a milestone in the global fight against climate change. Against this backdrop, and as a result of credit institutions’ alignment with the agreement, it is important to analyse its impact on lending to firms. Takeaways •The 2015 Paris Agreement represents...