ratio) and size (TBA) of the industry are linked to lower sovereign risk in general. Foreign bank penetration and …

This paper studies bank loan pricing in the euro area over the period October 2008 to October 2014. This period was … of a novel econometric approach whereby bank risk aversion is treated as an unobservable random effect. We find that … offer lower bank lending rates. We also find that banks with a lower cost of debt financing offer lower lending rates. Our …

. Building on these findings, we show that asset encumbrance indicators carry predictive information for bank-specific crises as …

We model EU countries' bank ratings using financial variables and allowing for intercept and slope heterogeneity. Our …

We model EU countries' bank ratings using financial variables and allowing for intercept and slope heterogeneity. Our …

conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area … empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and …

swaps (CDS). Bank bailout programs changed the composition of both banks' and sovereign balance sheets and, moreover … period before bank bailouts the contagion disperses from bank credit spreads into the sovereign CDS market. After bailouts, a … interdependence of government and bank credit risk is heterogeneous across countries, but homogeneous within the same country …