Based on a sample of EU listed banks, we estimate the sensitivity of banks' marginal cost of debt and analyse the potential impact of the post-crisis regulatory package. We build synthetic estimates of risk in banks' books and the macroeconomic environment and argue that regulatory changes alter...

Prior to the recent global financial crisis, the Bank of England last provided emergency liquidity assistance to banks in the early 1990s. This was intended to prevent contagion from a group of small banks to larger, systemically important financial institutions. The Bank of England is now in a...

We develop a partial adjustment model in order to estimate the factors contributing to banks' internal target capital ratio, lending policy and holding of securities. The model is estimated on a panel of listed euro area banks and country specific macrovariables. Firstly, banks' internal target...

We contribute to the empirical literature on the impact of shocks to bank capital in the euro area by estimating a Bayesian VAR model identified with sign restrictions. The variables included in the VAR are those typically used in monetary policy analysis, extended to include aggregate banking...