-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 …

of collateralized risky debt. The presence of moral hazard creates a link between the volatility in bank asset returns … and bank leverage. We find that, while standard TFP shocks fail to replicate the volatility and cyclicality of leverage …

Europe's financial structure has become strongly bank-based – far more so than in other economies. We document that an … paper concludes by discussing policy solutions to Europe's “bank bias”, which include reducing regulatory favouritism …

We analyse the impact of standard and non-standard monetary policy measures on bank profitability. For empirical … monetary policies on market-based measures of expected bank profitability and credit risk, by employing an event study analysis … identification, the analysis focuses on the euro area, thereby exploiting substantial bank and country heterogeneity within a …

Europe’s financial structure has become strongly bank-based – far more so than in other economies. We document that an … paper concludes by discussing policy solutions to Europe’s “bank bias”, which include reducing regulatory favouritism …

initial share of bond- relative to bank-based finance; this effect weakens, and may even reverse, in economies with a low … when bank lending contracts …

a unique bank-level dataset. Bank balance sheet characteristics such as the capital ratio and the exposure to sovereign … debt are responsible for the heterogeneity of pass-through of conventional monetary policy changes. The location of a bank …

demand schedule of the representative bank is relatively flat around the middle of the interest rate corridor set by the … standing facilities. This suggests that liquidity effects on the overnight inter-bank rate should be very muted on this day …. Our calibration exercise suggests that the probability of an individual bank's daily overdraft in the euro area is very …

market power and improve the transmission efficiency of monetary policy to banks and non-bank financial institutions …