Since 2007, the European Central Bank responded decisively to the challenges posed by the global financial crisis, reducing key policy interest rates to unprecedented low levels and intervening with non-standard policy measures (i.e., monetary easing and liquidity provision). This paper aims to...

The admission by the Greek government on October 18, 2009, of large-scale accounting fraud in its national accounts sparked an unprecedented sovereign debt crisis that rapidly spread to the Eurozone’s weakest member states. As the crisis increasingly drove a wedge between a seemingly resilient...

Conventional wisdom leads to assert that good governance may underpin bank performance while bad governance destroys stability and soundness. Using the banks in the Eurostoxx index, we run a factor analysis that enables us to synthesize 23 bank board characteristics into seven key features:...

We exploit a timely city-level panel of individual house price estimates for both small and big real-estate markets in California USA to estimate the impact of COVID-19 on the housing market. Descriptive analysis of spot house price estimates, including contemporaneous price uncertainty and...

This paper studies the influence of central bank lending operations on the announcement effects of European banks’ seasoned equity offerings (SEOs). We find that larger participation in lending operations is associated with more negative cumulative abnormal returns following the announcement....

The selection of securities eligible to serve as collateral for liquidity is crucial for monetary policy conduct. In the Eurozone, this selection is opaque within a set of securities satisfying minimal criteria. Using proprietary data, we empirically show that German banks anticipate the...

We exploit a panel of Zillow Inc. property valuations to estimate the excess real-estate price growth attributable to speculation triggered by the COVID-19 pandemic in three California regions. Our research design leverages the counterfactual comparison of price estimates for properties listed...

We construct a model where financial asset overpricing due to risk shifting can be moderated by capital requirements. Imperfect information about the level of capital per unit of risk, however, introduces uncertainty about the risk exposure of intermediaries. Overestimation of the level of...

We model a typical Asian-crisis-economy using dynamic general equilibrium tech-niques. Exchange rates obtain from nontrivial fiat-currencies demands. Sudden stops/bank-panics are possible, and key for evaluating the merits of alternative ex-change rate regimes. Strategic complementarities...

We model the interbank market for overnight credit with heterogeneous banks and asymmetric information. An unsophisticated bank just trades to compensate its liquidity imbalance, while a sophisticated bank will exploit its private information about the liquidity situation in the market. It is...