In 2014, the EU established the single resolution mechanism (SRM) to ensure orderly resolution of failing banks with minimal burden to taxpayers, avoiding costly bail-outs. We assessed the appropriateness of the policy framework and organisational setup of resolution planning, as well as the qua...
This paper develops an early warning model of systemic banking crises that combines regression tree technology with a statistical algorithm to improve its accuracy and overcome some drawbacks of more standard models....
Euro area governments have committed to break the doom loop between banks and sovereigns. But policymakers disagree on how to treat sovereign exposures in bank regulation. Our contribution is to model endogenous sovereign portfolio reallocation by banks in response to regulatory reform. Simulati...
