Banking sector fragility linkages in the euro area: Evidence for crisis years 2007–2010

Alexander Ludwig and Karol Sobański

Economics Letters, 2014, vol. 125, issue 3, 451-454

Abstract: We investigate fragility linkages among national banking sectors in the euro area during the crisis years 2007–2010. We find that their number increased sharply with the outbreak of the subprime crisis in the US in the first half of 2007 and then remained at a relatively constant and high level until the Greek bailout and the creation of the Eurozone-wide bailout funds in mid-2010. The epicenter of spillover risk shifted from banking sectors in the euro area periphery towards banking sectors in the core countries during the period.

Keywords: Banking sector fragility; Spillover risk; Eurozone; Granger causality; Distance to default (search for similar items in EconPapers)
JEL-codes: G01 G13 G21 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176514003899
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:125:y:2014:i:3:p:451-454

DOI: 10.1016/j.econlet.2014.10.010

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().