Securitisation could help plug Europe’s funding gap
Deeper capital markets are essential to the continent’s growth
Central banks complete successful tests of cross-border blockchain payments
Prototype, backed by Federal Reserve Bank of New York and BoE, allows near-instantaneous settlement of payments
First Abu Dhabi Bank exposed to insolvencies of MFS-linked properties
UAE’s largest bank financed 60 companies now set to appoint administrators
Is the tenure of a leader becoming ‘nasty, brutish and short’?
When Wes Streeting and Andy Burnham announced that they intend to challenge Keir Starmer as prime minister, it felt like the start of a depressingly familiar loop. A leader who had made many great-sounding promises failed to deliver and lost the trust of the public. The public demands he quit, and he may soon be replaced by another leader who also makes impressive pledges.
The politics of unrealistic numbers
How to spot a load-bearing “up to”
Stockholding in Europe: Evidence from the Consumer Expectations Survey
We examine recent changes in stock market participation using newly available survey data from eleven euro area countries over the period 2020–2024. The evidence points to substantial turnover, with around 10% of non-stockholders entering the market each year, and more than 20% of stockholders exiting. New entrants tend to have lower education, income, financial literacy, and risk tolerance than established investors, indicating a shift in the composition of market participants. We also highlight the growing importance of cryptocurrency investments among retail investors.
Identifying relationship-level effects using covariance restrictions
We propose a new model in which relationship-specific effects or shocks are identified in a bipartite network under mild covariance restrictions, generalizing the influential Abowd et al. (1999) framework. For example, separate demand shocks are identified for each bank from which a firm borrows. We show how previous approaches break down when confronted with such heterogeneity, while our novel identification strategy yields a simple estimator that is consistent and asymptotically normal, under weaker network density assumptions than previous approaches.
Stockholding in Europe: Evidence from the Consumer Expectations Survey
We examine recent changes in stock market participation using newly available survey data from eleven euro area countries over the period 2020–2024. The evidence points to substantial turnover, with around 10% of non-stockholders entering the market each year, and more than 20% of stockholders exiting. New entrants tend to have lower education, income, financial literacy, and risk tolerance than established investors, indicating a shift in the composition of market participants. We also highlight the growing importance of cryptocurrency investments among retail investors.
Identifying relationship-level effects using covariance restrictions
We propose a new model in which relationship-specific effects or shocks are identified in a bipartite network under mild covariance restrictions, generalizing the influential Abowd et al. (1999) framework. For example, separate demand shocks are identified for each bank from which a firm borrows. We show how previous approaches break down when confronted with such heterogeneity, while our novel identification strategy yields a simple estimator that is consistent and asymptotically normal, under weaker network density assumptions than previous approaches.
Rising bankruptcies, resilient loan books: unpacking euro area corporate credit risk
Corporate bankruptcies in the euro area have been on the rise, but the aggregate asset quality of banks’ corporate lending has remained broadly stable. This special feature analyses this divergence and its implications for financial stability. It shows that rising bankruptcies may partly be explained by the normalisation of firm turnover since the COVID-19 pandemic, albeit with marked cross-country unevenness.
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