behavior, For this purpose, we exploit a natural experiment stemming from the European Flood of August 2002, Combining micro … data with geo-coded flood maps allows us to analyze the causal impact of flood exposure on household savings within a … differences-in-differences setting, We find that flood exposure depresses household saving behavior in the medium run, The most …

following the severe summer flood of 2013, which affected widespread regions mostly in Eastern Germany. The analysis uses a … affected regions experienced a significantly higher, but ephemeral, impairment flow in the years following the flood …

According to current regulation, European banks can apply zero risk weights to sovereign exposures in their balance … sheet, irrespective of the assigned rating. We show that a zero risk weighting of sovereign bonds has implications by … introduced via a penalty function that punishes banks if they deviate from the target capital ratio. We study the zero risk …

subject to rollover risk. A bank’s optimal borrowing trades off the benefit from investing additional funds into profitable … assets with the cost of greater risk of a run by bank creditors. Changes in the interest rate affect the price and amount of …

are translated into aggregate estimates of credit risk indicators. The micro approach uses firm- level balance sheet and …, highlighting the importance of concentration risk in bank portfolios. …

way to come up with a measure of time-varying disaster risk in the spirit of Wachter (2013). Our findings imply that both … the disaster and the long-run risk paradigm can be extended towards explaining movements in the stock-bond return …

A bank's decision on loan supply and capital structure determines its immediate bankruptcy risk as well as the future … vulnerability to bankruptcy risks. We study these intra- and intertemporal links and analyze the influence of risk-weighted capital … regulatory margin calls or large liquidity coverage ratios achieve bank stability for all risk levels, but for large risks a bank …

This paper examines the relationship between central bank funding and credit risk-taking. Employing comprehensive bank … associated with the ECB’s maturity extensions and that the risk-taking sensitivity of banks borrowing from the ECB is independent …