This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk … increase their risk-taking. This increase in risk-taking however, should be more than outweighed by the benefits of higher …

We study the relationship between banks' size and risk-taking in the context of supranational banking supervision …. Consistently with theoretical work on banking unions and in contrast to analyses emphasising incentives under- pinned by the too …. Evidence is provided that the mechanism operates through the enhanced organisational efficiency of the supranational set …

result in systemic risk, increasing uncertainty about the quality of banks' assets and undermining trust in the banking … reduce the need for provisions and conceal potential losses. If forbearance is widespread in the banking system, it may …

We augment a standard monetary DSGE model to include a banking sector and financial markets. We fit the model to Euro … alter the perception of market risk and hit financial intermediation — ‘financial factors’ in short — are prime determinants … intermediation turns an otherwise diversifiable source of idiosyncratic economic uncertainty, the ‘risk shock’, into a systemic force …

The purpose of this paper is to compare the cyclical behavior of various credit impairment accounting regimes, namely …

tests to establish the link between competition and measures of profit efficiency in banking, and find that competition … based approach to large data sets for European and U.S. banks, we offer new empirical evidence that efficiency plays a key … indeed increases bank efficiency. Second, building on these results, we examine the relation between the Boone indicator …

Does the level of deposits matter for bank fragility and efficiency? In a banking model with endogenous bank runs and a …

-based benchmark portfolio that mimics individual banks' interest rate and credit risk exposure. From 2015 to mid-2022, euro area banks … rate or credit risk when hit by shocks. Using the euro area credit register and the pandemic shock for identification, we …

well as measures of trust in the households' main bank and the banking sector. We find that households who distrust the … banking sector are less likely to hold a bank account. Moreover, account holders are more likely to switch to a new main bank …