The European Sovereign Debt Crisis: Breaking the Vicious Circle between Sovereigns and Banks

The book explains why the euro area has made more progress in reining in the risks of sovereign-bank financial contagion than the reverse. It analyzes the legal and regulatory measures taken to mitigate the exposure of sovereigns to commercial bank crises and explores why the channel of contagion moving from sovereigns to banks has proven harder to close. It is essential reading for students, researchers, and practitioners interested in sovereign debt crises and the euro-area banking system.

Format: Paperback / softback
Length: 236 pages
Publication date: 29 January 2024
Publisher: Taylor & Francis Ltd

The European Sovereign Debt Crisis: Breaking the Vicious Circle between Sovereigns and Banks delves into the intricate dynamics that have contributed to the heightened focus on reining in the risks associated with the well-documented bi-directional financial contagion transmission mechanism that connects sovereigns to commercial banks within the euro area. By examining the legal and regulatory measures implemented by Europe and the euro area to mitigate the exposure of sovereigns to financial crises originating from commercial banks, this book sheds light on areas where further enhancements to the existing toolkit are either desirable or necessary. Furthermore, the chapters delve into the complexities behind the challenge of closing the channel of contagion moving from sovereigns to commercial banks, employing economic and legal arguments to support their analysis. This work serves as a vital resource for students, researchers, and practitioners with a keen interest in sovereign debt crises and the intricacies of the euro-area banking system.

Weight: 408g
Dimension: 156 x 233 x 17 (mm)
ISBN-13: 9781032030555