Room for Manoeuvre: The Deleveraging Story of Eurozone Banks Since 2008

Europe’s banks are raising their capital-asset ratios to meet regulatory requirements. Many fear that this will trigger a contractionary shrinking of assets. This column presents new evidence that much of the ratio increases since 2009 have come fro new capital rather than reducing exposure to the real economy. Investor trust in European banks has dwindled, […]

Next-Generation System-Wide Liquidity Stress Testing

The global financial crisis has shown that neglecting liquidity risk comes at a substantial price. This column presents a new framework to run system-wide, balance sheet data–based liquidity stress tests. The liquidity framework includes a module to simulate the impact of bank-run type scenarios, a module to assess risks arising from maturity transformation and rollover […]