Lamers, Martien; Present, Thomas; Soenen, Nicolas; … - 2021
We investigate the effectiveness of the Bank Recovery and Resolution Directive (BRRD) in mitigating the bank-sovereign nexus for 39 banks in 8 Euro Area countries, using CDS spreads to capture bank and sovereign credit risk between 2008-2020. If the BRRD bail-in framework is credible, exogenous...