The introduction of the SME Supporting Factor (SF) allows banks to reduce capital requirements for credit risk on exposures to SME. This means that banks can free up capital resources that can be redeployed in the form of new loans. Our study documents that the SF alleviates credit rationing for...

We show that sovereign CDS that have common dealers tend to be more correlated, especially when the dealers display similar quoting activity in those contracts over time. This commonality in dealers' activity is a powerful driver of CDS comovements, over and above fundamental similarities...

This paper studies the effect of macroprudential requirements on capital ratios for a sample of euro area banks. We first document that banks' capital ratios are typically above minimum regulatory levels. The banks in our sample differ in their degree of systemic importance and once we split the...

This paper studies the effects of the bank capital requirements imposed by the European authorities in October 2011 on loan collateral and personal guarantees usage to enhance capital ratios. We use detailed information on the loan contracts granted by a representative Spanish bank and several...

This paper measures fragmentation in the European interbank market. We document that, during the recent crisis, fragmentation in the interbank market has been, on average, higher in the peripheral countries than in the core ones and it has increased particularly during periods of financial...

The introduction of the SME Supporting Factor (SF) allows banks to reduce capital requirements for credit risk on exposures to SME. This means that banks can free up capital resources that can be redeployed in the form of new loans. Our study documents that the SF alleviates credit rationing for...

This paper studies firm-level factors shaping the enforcement of financial reporting regulation on private firms and proposes bank lending as a particularly important one. Our tests are based on a rare combination of data sets, which allows us to construct unique measures of misreporting,...

We study the access to credit and the propensity to exit the market of firms with no bank debt (the main funding source of Spanish non-listed firms) around the Covid-19 crisis. Our methodology enables us to disentangle credit supply from credit demand, as having no bank debt may be due to...

This paper studies firm-level factors shaping the enforcement of financial reporting regulation on private non-financial firms and propose bank lending as a particularly important one. Our tests are based on a rare combination of datasets, which allows us to construct unique measures of...