-section of individual bank portfolio decisions. For this purpose, an augmented version of the DSGE model of Gertler and Karadi … (2013), featuring a segmented banking sector, is estimated for the euro area and combined with a bank portfolio optimisation … approach using granular bank level data. An important feature of our modelling approach is that it captures the heterogeneity …

equity. These findings are robust across financial subsectors. We then build a general equilibrium model with banks subject … to endogenous leverage constraints, and assess its ability to replicate the facts. In the model, banks borrow in the form … of collateralized risky debt. The presence of moral hazard creates a link between the volatility in bank asset returns …

I add a moral hazard problem between banks and depositors as in Gertler and Karadi (2009) to a DSGE model with a costly … state verification problem between entrepreneurs and banks as in Bernanke et al. (1999) (BGG). This modification amplifies … my model to match the volatility and correlation with output of the external finance premium, bank leverage …

level for the banks that have been subject of the 2018 EBA stress tests. Therefore, we perform a holistic review of the … the role played by bank-level variables, banking sector features in each country, and the specific characteristics of the …/substitution effects of both bank- and portfolio-level variables with the characteristics of the banking sector when explaining credit risk …

We empirically investigate the effects of fiscal policy on bank balance sheets, focusing on episodes of fiscal … consolidation. To this aim, we employ a very large data set of individual banks' balance sheets, combined with a newly compiled data …, the banks' demand for government securities should increases relative to other assets …

natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by … sovereign debt crisis. An unexpected increase in capital requirements for a subset of Portuguese banks in 2011 provides a … provisioning. We develop a method to detect when banks delay loss reporting using detailed loan-level data. We then show that the …

change in NPL ratios tends to depress bank lending volumes, widens bank lending spreads and leads to a fall in real GDP … analysis provides quantitative evidence that reducing banks' NPL ratios can produce significant benefits in euro area countries …