• 1 Motivation
  • 2 Size Effects and the Banking Granular Residual
  • 2.1 The Granular Residual: The Original Idea
  • 2.2 The Granular Residual: Application to Banking
  • 2.3 Data and Stylized Facts
  • 3 Implications of the Banking Granular Residual for Macroeconomic Stress-Testing
  • 3.1 The Stress-Testing Framework
  • 3.2 The Granular Residual and Banking Distress
  • 3.3 Robustness
  • 3.4 Effects on the Macro-Economy: VAR Estimation
  • 4 Conclusions
  • 5 Data Appendix