This paper proposes a stochastic model of a bipartite credit network between banks and the non-bank corporate sector … that encapsulates basic stylized facts fond in comprehensive data sets for bank-firm loans for a number of countries. When …

addressing the distress of a city-level commercial bank. This policy shift led to a persistent widening of credit spreads and a …

We propose a simple model of the sovereign-bank diabolic loop, and establish four results. First, the diabolic loop can …

-performing loans (NPLs), taking into account the evolution of the external context and the bank-specific situation. In this sense, our …

A bank's decision on loan supply and capital structure determines its immediate bankruptcy risk as well as the future … availability of internal funds. These internal funds in turn determine a bank's future costs of external finance and future …-to-asset ratios, liquidity coverage ratios and regulatory margin calls on the dynamics of loan supply and bank stability. Only …

bank issues covered bonds backed by a pool of assets that is bankruptcy remote and replenished following losses …. Encumbering assets allows a bank to raise cheap secured debt and expand profitable investment, but it also concentrates risk on …

conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area … empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and …

Bank regulators and academics have long conjectured the beneficial effects of smoothing in loan loss provisions (i ….e., making higher provisions during good times so as to avoid doing so during bad times) for bank lending and stability, while … emerging market crisis to capture an adverse supply shock to bank capital, we show, consistent with the bright-side, that …