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Are banks affected by their holdings of government debt?

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  • Chiara Angeloni
  • Guntram B. Wolff

Abstract

The strong relation between sovereign and banking stress is frequently emphasised, especially since the start of the European sovereign debt crisis. This working paper sheds light on the determinants of the link. It studies the stock market performance and the holdings of government debt of the banks stress tested by the European Banking Authority in July and December 2011. A number of results stand out- Banks’ holdings of the sovereign bonds...

Suggested Citation

  • Chiara Angeloni & Guntram B. Wolff, 2012. "Are banks affected by their holdings of government debt?," Working Papers 717, Bruegel.
    • Handle: RePEc:bre:wpaper:717
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    References listed on IDEAS

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