Budnik, Katarzyna; Dimitrov, Ivan; Groß, Johannes; … - 2022
This paper looks at the macroeconomic impact of the two policies proposed by ECB Banking Supervision to tackle the high … assessment of the package is analysed via a semi-structural model, the Banking Euro Area Stress Test (BEAST). The coverage …. Furthermore, the coverage expectations can also moderately but persistently reduce procyclicality in the banking system. …