Managing the Sovereign-Bank Nexus

ByGiovanni Dell'Ariccia, Caio Ferreira, Nigel Jenkinson, Luc Laeven, Alberto Martin, Camelia Minoiu, Alex Popov

September 7, 2018

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Banking, Banking crises, Credit default swap, Financial crises, Financial institutions, Money, Public debt, Sovereign bonds

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

Pages:
54
Volume:
2018
DOI:
https://doi.org/10.5089/9781484359624.087
Issue:
016
Series:
Departmental Paper No. 2018/016
Stock No:
MSBNEA
ISBN:
9781484359624
ISSN:
2616-5333

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Departmental Papers