Please note: In order to keep Hive up to date and provide users with the best features, we are no longer able to fully support Internet Explorer. The site is still available to you, however some sections of the site may appear broken. We would encourage you to move to a more modern browser like Firefox, Edge or Chrome in order to experience the site fully.

Managing the sovereign-bank nexus, Paperback / softback Book

Managing the sovereign-bank nexus Paperback / softback

Part of the Departmental paper series

Paperback / softback

Description

The financial health of banks and sovereigns is intertwined in a "sovereign-bank nexus" that may multiply and accelerate vulnerabilities in each sector, and lead to adverse feedback loops.

Increasing resilience requires reducing the likelihood of severe stress in each sector, as well as lowering the potency of the nexus.

However, designing effective reforms requires a clear understanding of the interaction between and the magnitude of the different channels that give rise to the nexus.

This paper identifies these channels, assesses their empirical relevance, and discusses the policy implications of these findings

Information

Information