in line with the economic conditions they face. Bank responses feed back to the macroeconomic environment affecting …

contract their balance sheets. These bank responses generate externalities that propagate in the form of macro … macro-financial feedback loops can significantly affect macroeconomic outcomes and bank-specific stress tests results. The … heterogeneity in bank lending responses matters: it determines how each bank fares under adverse conditions and the external effects …

results enhanced price discrimination as the impact on bank CDS spreads and equity prices tended to be stronger for the weaker …

with bank-level data to study the contagion potential of an exogenous shock via credit and funding risks. We find that …-linear function of the combination of network structures and bank-specific characteristics …