estimated New Keynesian model with a bank. A key dimension of policy in the crisis was massive government support for banks … bank asset losses, of government support for banks, and other fiscal stimulus measures, in the EA. Our results suggest that …

hedge to fund drawn credit lines and other commitments. We shed new light on this issue by studying the behavior of bank …

Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …

creating counter-cyclical incentives for banks to raise capital, and so encourage bank lending in bad times. They avoid the …

This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank … cheaply, effectively shifting the risk of some of the potential sovereign default losses on the common central bank. …

stability and soundness of the banking systems in the run-up of the 2007/8 financial crisis. The positive externalities of bank …

the sovereign debt crisis. This paper investigates the impact of this announcement on bank share prices, bank CDS spreads … and sovereign CDS spreads. The main private beneficiaries were bank creditors, especially of banks heavily exposed to … CDS spreads. The combined gains of bank debt holders and shareholders exceed the increase in the value of their sovereign …