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Bank funding strategy after the bail-in announcement

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  • Fiordelisi, Franco
  • Scardozzi, Giulia

Abstract

Euro area countries have recently moved to a new centralized bail-in framework by removing implicit public guarantees. Our paper analyzes banks' funding strategies after the bail-in proposal. We show that Euro area banks relied more on cheaper and better protected sources of funding, such as deposits, and reduced fund collection from sources with weaker creditor protection, such as bonds.

Suggested Citation

  • Fiordelisi, Franco & Scardozzi, Giulia, 2022. "Bank funding strategy after the bail-in announcement," Journal of Corporate Finance, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:corfin:v:74:y:2022:i:c:s092911992200058x
    DOI: 10.1016/j.jcorpfin.2022.102215
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    More about this item

    Keywords

    Bail-in; Banking stability; Bank funding; Liability management;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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