banks from 26 countries over the period 2005–2015, we examine the nature of the relationship between bank risk, bank …

predictor of GDP. We provide evidence linking this increasing connectedness between banks and the macroeconomy to secular …

We develop a macroeconomic portfolio stress test that is specifically geared towards small and medium-sized banks. We … banks' capital ratios. Our results show that savings banks and cooperative banks prove to be very resilient to macroeconomic … stress, while more than 6% of our sample's credit banks "fail" the stress test, mainly due to their lack of capital. The main …