The authors investigate the determinants of banks’ sovereign exposures and their effects on lending during and after the crisis. Bank exposures significantly amplified the impact of sovereign stress on bank lending to domestic firms, as well as on lending by foreign subsidiaries of stressed-country banks to firms in non-stressed countries.
Review of Finance, Volume 21, Issue 6, 1 October 2017
Published: 17 August 2017
Source: Review of Finance
Carlo Altavilla, European Central Bank and CSEF
Marco Pagano, Universita` di Napoli Federico II
> Bank exposures and sovereign stress transmission