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Níl an t-ábhar seo ar fáil i nGaeilge.

Julian Metzler

24 May 2018
FINANCIAL STABILITY REVIEW - BOX
Financial Stability Review Issue 1, 2018
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Abstract
The market for NPLs in Europe has become more active in recent years. The total amount and volume of transactions has continuously increased in the last three years, although part of the increase in volumes can be attributed to just a few large transactions. Italy and Spain account for the majority of the market turnover. However, the geographical scope of NPL markets in the euro area has also widened, with transactions starting in Greece in 2017 and in Cyprus in 2018. At the same time, market activity in more mature NPL markets, such as Ireland, has weakened against the backdrop of a diminishing supply of NPLs.
29 May 2019
FINANCIAL STABILITY REVIEW - BOX
Financial Stability Review Issue 1, 2019
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Abstract
Weak corporate asset quality is a concern from a financial stability perspective. Distressed corporate debt has been the centrepiece of the high stock of non-performing loans (NPLs) of euro area banks. NPL stocks are a symptom of balance sheet difficulties faced by a large proportion of firms, which in turn may depress investment and employment, deprive banks of profitable lending opportunities, and therefore weigh on economic growth and the health of the banking sector itself.
26 May 2020
FINANCIAL STABILITY REVIEW - BOX
Financial Stability Review Issue 1, 2020
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Abstract
Recent events have shown that stress in non-banks can affect other parts of the financial system, for example through forced asset sales and reduced short-term funding. This box examines the interconnections between banks and non-banks through direct exposures, overlapping portfolios and ownership links, and considers how these can increase the risk of systemic contagion.
26 May 2020
FINANCIAL STABILITY REVIEW - BOX
Financial Stability Review Issue 1, 2020
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Abstract
Many euro area countries have made loan guarantee schemes a central element of their support packages in response to the coronavirus shock (see Chapter 1). In the face of acute revenue and income losses, these temporary schemes can support the flow of credit to the real economy and thereby help stabilise the banking system. This box sets out an illustrative assessment of how the announced schemes are intended to operate, and how they might affect the scale of losses that banks may face in the quarters ahead.
24 November 2020
FINANCIAL STABILITY REVIEW - ARTICLE
Financial Stability Review Issue 2, 2020
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Abstract
Fiscal, prudential and monetary authorities have responded to the coronavirus (COVID-19) pandemic by providing unprecedented support to the real economy. Importantly, the combination of policy actions has done more to limit the materialisation of risks to households and firms than each policy individually. Exploiting complementarities and ensuring the most effective combination of policies will, however, be equally important when authorities start to phase out the various related relief measures. The fact that in particular the enacted fiscal and labour market measures, as well as their phase-out schedules, differ substantially across the largest euro area economies further complicates the challenge of obtaining the most effective policy combination. Along with the reduction in support to the real economy, the phasing-out of policy measures could adversely affect banks’ balance sheets and capitalisation. Resulting cliff effects in policy support are relevant for prudential authorities in the context of their future decisions on the replenishment of capital buffers. The results of the analysis suggest there are substantial risks associated with the early withdrawal of policy support, although the analysis does not account for the medium-term risks of protracted policy support.
JEL Code
C68 : Mathematical and Quantitative Methods→Mathematical Methods, Programming Models, Mathematical and Simulation Modeling→Computable General Equilibrium Models
E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
E58 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies
E62 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Fiscal Policy
E63 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Comparative or Joint Analysis of Fiscal and Monetary Policy, Stabilization, Treasury Policy
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
H81 : Public Economics→Miscellaneous Issues→Governmental Loans, Loan Guarantees, Credits, Grants, Bailouts
25 November 2020
FINANCIAL STABILITY REVIEW - BOX
Financial Stability Review Issue 2, 2020
Details
Abstract
The increase in sovereign debt in the wake of the pandemic has renewed concerns about the developments in the euro area sovereign-bank nexus. While these interlinkages may arise through various channels, this box assesses these developments focusing on the direct exposures of euro area banks to sovereign debt securities. In 2020 to date, euro area banks increased their exposures to domestic sovereign debt securities by almost 19% in nominal amount, with some differences across countries. This increase reflects both higher issuance of government debt and some bank-specific factors, including the decision to invest the increased amount of deposits in low-risk assets. In future months, euro area banks could further increase their domestic sovereign bond exposures, also in relation to the forthcoming trajectory of government debt, though, the actual path of banks’ domestic sovereign bond exposures will depend on multiple factors at the country-level and at the institution-level. The box explores also the implications of market valuation changes in euro area banks’ sovereign bond portfolios on their capital positions. So far, the vulnerability of banks to higher sovereign debt holdings has been contained because valuation changes have been modest. But with sovereign debt positions expected to remain elevated for some time, vulnerability to valuation changes will persist and other sovereign-bank linkages could also increase.
JEL Code
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
G28 : Financial Economics→Financial Institutions and Services→Government Policy and Regulation
H63 : Public Economics→National Budget, Deficit, and Debt→Debt, Debt Management, Sovereign Debt