Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183359
Authors: 
Dell'Ariccia, Giovanni
Ferreira, Caio
Jenkinson, Nigel
Laeven, Luc
Martin, Alberto
Minoiu, Camelia
Popov, Alexander
Year of Publication: 
2018
Series/Report no.: 
ECB Working Paper No. 2177
Abstract: 
This paper identifies the various channels that give rise to a "sovereign-bank nexus" whereby the financial health of banks and sovereigns is intertwined. We find that banks and sovereigns are linked by three interacting channels: banks hold large amounts of sovereign debt; banks are protected by government guarantees; and the health of banks and governments affect and is affected by economic activity. Evidence suggests that all three channels are relevant. The paper concludes with a discussion of the policy implications of these findings.
Subjects: 
fiscal policy
sovereign risk
financial stability
financial crisis
sovereign-bank nexus
JEL: 
E62
F34
G01
G21
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3282-3
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.