Using the announcement of the first Greek bailout on April 11, 2010, we quantify significant spillover effects from … average by 1.1 percent after the bailout. These effects are more pronounced in countries that belong to the Eurozone and that …

confidential database on banks' bilateral exposure and employing a country-pair panel instrumental variables approach. Countries …

financial crisis, which stands out in international comparison as banks located in the euro area and in the rest of the EU …

was lower, and loan rates were higher for banks with higher bailout expectations. The interest margins of unsupported …. Political indicators reveal bailout expectations after 2009, manifested as beliefs about the predicted probability of receiving … conduct of unsupported banks after the program stopped in the fourth quarter of 2009. The risk premium required by depositors …

and become toxic. We study the effects of the LRR on lending strategies and its implications for banks' stability. We show … that the LRR might induce banks with low-risk lending strategies to diversify their portfolios into high-risk loans until …, the aggregate capital costs of banks do not increase. However, because the diversification makes banks' portfolios more …

. Using a theoretical micro model, we show that a leverage ratio requirement can incentivise banks that are bound by it to … capital and therefore increased loss-absorbing capacity, thereby leading to more stable banks. These theoretical predictions … are tested and confirmed in an empirical analysis on a large sample of EU banks. Our baseline empirical model suggests …

identify the effect of higher capital requirements by comparing the change in the outcome for banks just above and below the … discontinuity and on a difference-in-differences matching design. We find that, when parent banks are constrained with higher … effect by reducing banks' risk-taking while having a (temporary) adverse impact on the real economy through a decrease in …

In 2001, government guarantees for savings banks in Germany were removed following a law suit. We use this natural …/borrower information. The results suggest that banks whose government guarantee was removed reduced credit risk by cutting off the riskiest … borrowers from credit. At the same time, the banks also increased interest rates on their remaining borrowers. The effects are …

How do banks respond to changes in capital requirements as a result of the stress tests? Does the disclosure of stress … test results matter? To answer these questions, we study the impact of European stress tests on banks’ lending, their … the 2016 and 2018 exercises covering a total of 93 and 87 banks, respectively; and (ii) quarterly supervisory information …