Purpose: The purpose of this paper is to discuss and then analyze the interdependency between bank and sovereign risk … eurozone, and the remaining five belong to neither group. This provides a good comparison group of countries. Findings: We find … evidence supporting the existence of significant bank and sovereign risk linkages. There are, however, different patterns in …

The paper reviews the origins and complexity of the ongoing Eurozone debt crisis in which bank bad debts and government …

Cross-border bank lending to emerging markets dropped sharply in the second half of 2011 as the euro area crisis … that the latest contraction in cross-border bank lending was largely linked to the deteriorating health of euro area banks …

changes have an asymmetric impact in that bank stocks benefit more from negative CDS spread shocks than they are hurt by …

European banks have been criticized for holding excessive domestic government debt during the recent Eurozone crisis …, which may have intensified the diabolic loop between sovereign and bank credit risks. By using a novel bank-level dataset … covering the entire timeline of the Eurozone crisis, I first re-confirm that the crisis led to the reallocation of sovereign …

on corporates and the existence of a ‘bank tax'. These are complementary to the four explanations offered in the … (ESBies) by banks in low-rated countries. Bank regulations such as constraints on large exposure or risk-based capital on …

From 2010 to 2012, the relation between bank stock returns from European Union (EU) countries and the returns on …

on a European level. Following De Nicolo and Kwast (2001), mean rolling-window correlations between bank stock returns …