I investigate whether bank exposures to sovereign debt during the European debt crisis affected the real economy. I show a shock to the marked-to-market (MTM) value of bank exposures to sovereign debt led to credit tightening in 2010–2011 that had negative real effects on small and young firms. Since banks do not usually mark their holdings of sovereign bonds to market, I explore the transmission channels of the unrealized losses on credit supply .Since banks do not usually mark their holdings of sovereign bonds to market, I explore the transmission channels of the unrealized losses on credit supply. I show that a shock to MTM exposures reduced bank short-term funding from US money market funds rather than affecting equity or working through alternative channels.

Bank lending and the European sovereign debt crisis

De Marco, Filippo
2019

Abstract

I investigate whether bank exposures to sovereign debt during the European debt crisis affected the real economy. I show a shock to the marked-to-market (MTM) value of bank exposures to sovereign debt led to credit tightening in 2010–2011 that had negative real effects on small and young firms. Since banks do not usually mark their holdings of sovereign bonds to market, I explore the transmission channels of the unrealized losses on credit supply .Since banks do not usually mark their holdings of sovereign bonds to market, I explore the transmission channels of the unrealized losses on credit supply. I show that a shock to MTM exposures reduced bank short-term funding from US money market funds rather than affecting equity or working through alternative channels.
2019
2018
De Marco, Filippo
File in questo prodotto:
File Dimensione Formato  
SovCrisis_BankLending_final.pdf

non disponibili

Descrizione: paper final version accepted
Tipologia: Documento in Pre-print (Pre-print document)
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 555.46 kB
Formato Adobe PDF
555.46 kB Adobe PDF   Visualizza/Apri
acceptance_jfqa.pdf

non disponibili

Descrizione: Lettera di acceptance da editor rivista JFQA
Tipologia: Allegato per valutazione Bocconi (Attachment for Bocconi evaluation)
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 62.29 kB
Formato Adobe PDF
62.29 kB Adobe PDF   Visualizza/Apri
bank-lending-and-the-european-sovereign-debt-crisis.pdf

non disponibili

Descrizione: articolo
Tipologia: Pdf editoriale (Publisher's layout)
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 418.67 kB
Formato Adobe PDF
418.67 kB Adobe PDF   Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/4000491
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 45
  • ???jsp.display-item.citation.isi??? 43
social impact