Capturing financial network linkages and contagion in stress test models are important
goals for banking supervisors and central banks responsible for micro- and macroprudential …

The ECB has been intensifying its quantitative work aimed at capturing climate-related risks
to financial stability. This includes estimating financial system exposures to climate-related …

The green bond market has increased rapidly in recent years amid growing concerns about
climate change and wider environmental issues. However, whether green bonds provide …

This paper shows how the combined endogenous reaction of banks and investment funds
to an exogenous shock can amplify or dampen losses to the financial system compared to …

We investigate the consequences of banks' liquidity hoarding behavior for the stability of the
financial system proposing a new model of banking contagion through two channels, …

We study whether investors’ withdrawals from mutual funds affect corporate bond prices. As
mutual funds have become major players in the financial markets, they are likely to exert …

Funds with an environmental, social and corporate governance (ESG) mandate have been
growing rapidly in recent years and received inflows also during periods of market turmoil, …

This paper studies the scope for cross-border contagion in the European banking sector using
true bilateral exposure data. Using a model of sequential solvency and liquidity cascades …

This paper studies the scope for cross-border contagion in the European banking sector using
true bilateral exposure data. Using a model of sequential solvency and liquidity cascades …

The ECB is continuing its work on incorporating climate-related risks into assessments of
financial stability. This includes a new analysis of disclosure, pricing and greenwashing risks in …