This study examines empirically whether the stock price crash risk of euro area banks’ is affected by crisis sentiment during the period 2004-2020. We introduce a diverse set of crisis sentiment aspects, including communication and investors’ focus of attention to market wide sentiment. We...

This study empirically examines whether the stock price crash risk of euro area banks is affected by crisis sentiment during the period 2004-2020. We introduce a diverse set of crisis sentiment aspects, including communication and investors’ focus of attention to market wide sentiment. We...

Utilizing bank-level data and a Mixed Frequency VAR approach, this study examines the effects of a shock at the economic sentiment on European banks’ profitability during the 1995–2019 period. We find that a greater shock in economic sentiment leads to a persistent and gradually amplified...

We employ quarterly credit standards data from the Bank Lending Survey, covering 14 EU countries for the period 2003Q1-2016Q1. By linking consecutive surveys and utilizing loan officers' responses regarding actual and expected credit standards, we set out to investigate which expectations...

We explore the trajectory of bank loan Terms and Conditions over the business cycle, where the latter is decomposed into its long-run (trend) and short-run (cyclical) components. We find that deterioration of each business cycle component leads to a significant tightening of credit terms and...