How has the feedback loop between banks and sovereigns changed since the crisis years?

Show full item record

Title: How has the feedback loop between banks and sovereigns changed since the crisis years?
Organization: Bank of Finland
Series: Bank of Finland. Bulletin
Series volume: 92
Series number: 1/2018
Year of publication: 2018
Publication date: 27.4.2018
Pages: 38-46
Subject (yso): velkakriisit; riskit; pankit; valtiot (alueelliset kokonaisuudet)
Keywords: pankkiunioni; kriisinratkaisu
Other keywords: banking union; crisis resolution; debt crisis
Abstract: One aim of Banking Union is to weaken the feedback loop between banks and their sovereigns so that increases in banks’ credit risk would no longer be reflected in sovereign credit risk and, conversely, banks’ financing costs would no longer be driven by their sovereign's creditworthiness. Currently, for banks and sovereigns alike, credit risk insurance costs much less than during the crisis. Although the bank-sovereign nexus has weakened, the feedback loop cannot be considered to be broken.
Link: http://www.bofbulletin.fi/
Rights: https://helda.helsinki.fi/bof/copyright


Files in this item

Total number of downloads: Loading...

Files Size Format View
bulletin36.pdf 788.6Kb PDF View/Open

This item appears in the following Collection(s)

Show full item record