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Small businesses (SMEs) depend on banks for credit. We show that the severity of the Eurozone crisis was worse in countries where firms borrowed more from domestic banks ("domestic bank dependence") than in countries where firms borrowed more from international banks. Eurozone banking...
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intensified cross-border banking. The share of the assets of national banking systems that come from other EU countries was rising … of banks in Banking Union come from other EU countries, while about a quarter of the assets of the top 25 banks in the … Banking Union are held in other EU countries. While a crisis-prevention framework for the euro area has largely been completed …
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