European perspective on the links among public investments, banking and sovereign risk

0490282 - ÚTIA 2019 RIV HR eng J - Journal Article
Kočenda, Evžen
European perspective on the links among public investments, banking and sovereign risk.
Public Sector Economics. Roč. 42, č. 2 (2018), s. 105-109. ISSN 2459-8860
R&D Projects: GA ČR(CZ) GBP402/12/G097
Institutional support: RVO:67985556
Keywords : public investments * banking * sovereign risk
OECD category: Applied Economics, Econometrics
http://library.utia.cas.cz/separaty/2018/E/kocenda-0490282.pdf

The sovereign risk and banking sector nexus in the EU has important implications for public finances in EU member states. After the GFC, the size of banking sectors of the EU countries was started to be perceived by market participants as an upper bound for potential bailouts. The link between sovereign risk and banking sector is relevant also from the private investment perspective. The structural break occurring around the onset of the GFC is relevant and yields support for the “wake-up call hypothesis” associated with the GFC.
Permanent Link: http://hdl.handle.net/11104/0284541