The European debt crisis has rekindled long-standing debates about the power of finance
and the fraught relationship between capitalism and democracy in a globalized world. Why …

This paper investigates contagion between bank and sovereign default risk in Europe over
the period 2007–2012. We define contagion as excess correlation, ie correlation between …

We show that after the start of the euro area sovereign debt crisis, lending by non-GIIPS
European banks with sizeable holdings of GIIPS sovereign bonds declined relative to …

Since 2008, eurozone sovereign yields have diverged sharply, and so have the
corresponding credit default swap (CDS) premia. At the same time, banks' sovereign debt …

We examine the implications of the sovereign debt tensions on the Italian credit market by
estimating the effect of the 10-year BTP-Bund spread on a wide array of bank interest rates …

ABSTRACT In 2012, the European Union (EU) adopted a transformational change to its
banking policy for the eurozone. It replaced the policy model of decentralized supervision …

We test whether the sharp increase in sovereign spreads of euro‐area countries with
respect to Germany after the explosion of the Greek crisis was due to deteriorating …

The article analyses the empirical relationship between bank credit risk and sovereign credit
risk in the euro area, using a system of simultaneous equations identified through …

We study how crises affect Central Clearing Counterparties (CCPs). We focus on a large
and safe segment of the CCP-cleared repo market during the Eurozone sovereign debt …

This paper discusses the creation of a European Banking Union. First, we discuss questions
of design. We highlight seven fundamental choices that decision makers will need to make …