This paper explores how banking sector developments and characteristics influence the propagation of risks from the banking sector to sovereign debt, including
This paper reviews empirical and theoretical work on the links between banks and their governments (the bank-sovereign nexus). How significant is this nexus? Wh
This paper explores the relationship between the level and management of public debt and financial stability, and explains the channels through which the two ar
This paper reviews empirical and theoretical work on the links between banks and their governments (the bank-sovereign nexus). How significant is this nexus? Wh
Motivated by the recent increase in domestic banks’ holdings of domestic sovereign debt (i.e., home bias) in the European periphery, this paper analyzes impli