exposures significantly amplified the transmission of risk from the sovereign and its impact on lending. This amplification of … the impact on lending cannot be ascribed to spurious correlation or reverse causality. …

bonds at the expense of lending to the real sector. To quantify the effect of this distortion, we build a standard RBC model …According to current regulation, European banks can apply zero risk weights to sovereign exposures in their balance … sheet, irrespective of the assigned rating. We show that a zero risk weighting of sovereign bonds has implications by …

transmission of risk from the sovereign and its impact on lending. This amplification of the impact on lending does not appear to …

that a sudden increase in sovereign default risk may lead to liquidity issues in the banking sector. Our model reveals that …

This paper analyzes the impact of US firms’ equity risk on bank lending standards and on the macroeconomy for two …-large firms. The finding provides support for the Risk Management Hypothesis, under which banks decrease lending to risky … an increase in firm risk on bank lending standards and the economy are amplified in a recession compared to an expansion. …

exposures and their effects on lending during and after the crisis. Public, bailed-out and poorly capitalized banks responded to … stress on bank lending to domestic firms, as well as on lending by foreign subsidiaries of stressed-country banks to firms in …

exposures significantly amplified the transmission of risk from the sovereign and its impact on lending. This amplification of … the impact on lending cannot be ascribed to spurious correlation or reverse causality …

amplified the transmission of risk from the sovereign and its impact on lending. This amplification of the impact on lending …

bonds at the expense of lending to the real sector. To quantify the effect of this distortion, we build a standard RBC model …According to current regulation, European banks can apply zero risk weights to sovereign exposures in their balance … sheet, irrespective of the assigned rating. We show that a zero risk weighting of sovereign bonds has implications by …

regulation, recovery and resolution, and risk culture. …