This study investigates the effects on risk and financial stability of the taxes on bank liabilities introduced across European countries after the global financial crisis. Using a difference-in-differences setup, we find that banks responded to the implementation of liability taxes by reducing their interbank exposure, and increasing both equity, at least in the short term, and the risk weight of their assets. When we consider these adjustments in a microsimulation model for bank portfolio losses, we show that liability taxes reduce risk in the banking sector and could therefore decrease the cost of crises.
BELLUCCI Andrea;
FATICA Serena;
HEYNDERICKX Wouter;
KVEDARAS Virmantas;
PAGANO Andrea;
2023-05-15
ELSEVIER SCIENCE BV
JRC132738
0929-1199 (online),
https://www.sciencedirect.com/science/article/pii/S0929119923000366,
https://publications.jrc.ec.europa.eu/repository/handle/JRC132738,
10.1016/j.jcorpfin.2023.102387 (online),
| Name | Country | City | Type |
|---|
This document is only visible at the Commission level.
You are not authorized to publish or distribute it outside the European Commission.
This is a public document. You can share this publication.
Datasets
| ID | Title | Public URL |
|---|
Dataset collections
| ID | Acronym | Title | Public URL |
|---|
Scripts / source codes
| Description | Public URL |
|---|
Additional supporting files
| File name | Description | File type |
|---|