ECB working paper finds fiscal consolidation improves bank balance sheets

piggy-banks1

A new working paper from the European Central Bank has found, using a "very large data set of individual banks' balance sheets", that standard capital adequacy ratios such as the Tier I ratio tend to improve following episodes of fiscal consolidation.

The paper analyses the effects of fiscal consolidations on the portfolio choices of banks and on banking sector stability. The authors, Jacopo Cimadomo, Sebastian Hauptmeier and Tom Zimmermann, see two channels through which fiscal adjustments

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: