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We study the impact of ECB's supervisory announcements on the Bank Stock index, from 2013 through 2017. Our evidence …, contributing to the volatility of the Bank Stock Index for Europe and Italy. Most announcements signal the need to raise more …
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demand to compensate them for the risk they bear when financing banks' equity has been persistently higher than the return on …). Finally, we use bank fundamentals to estimate the cost of equity for unlisted banks. In general, unlisted banks are found to …
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