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Managing the Sovereign-Bank Nexus

Author

Listed:
  • Mr. Giovanni Dell'Ariccia
  • Caio Ferreira
  • Nigel Jenkinson
  • Mr. Luc Laeven
  • Alberto Martin
  • Ms. Camelia Minoiu
  • Alex Popov

Abstract

This paper reviews empirical and theoretical work on the links between banks and their governments (the bank-sovereign nexus). How significant is this nexus? What do we know about it? To what extent is it a source of concern? What is the role of policy intervention? The paper concludes with a review of recent policy proposals.

Suggested Citation

  • Mr. Giovanni Dell'Ariccia & Caio Ferreira & Nigel Jenkinson & Mr. Luc Laeven & Alberto Martin & Ms. Camelia Minoiu & Alex Popov, 2018. "Managing the Sovereign-Bank Nexus," IMF Departmental Papers / Policy Papers 2018/016, International Monetary Fund.
    • Handle: RePEc:imf:imfdps:2018/016
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    More about this item

    Keywords

    DPPP; DP; economic activity; resolution framework; bank distress; interest rate; sovereign exposure; bank CDS; banking crisis; bank Risk; sovereign-bank nexus; bank risk; bank capital losses; bank's CD; bank CD; banks assets; Sovereign bonds; Banking crises; Credit default swap; Global;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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