Trust is crucial to eurozone interbank markets – ECB paper

European Union flag

Eurozone countries’ interbank markets are strongly affected by levels of trust in the financial system, a working paper published by the European Central Bank finds.

In The interbank market puzzle, Franklin Allen et al look at how trust affects the funding of banks in different eurozone countries. They use each country’s history of bank failures as a proxy for trust. The authors argue that how governments deal with this problem has a significant impact on a country’s trust in its banking system

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: