The sovereign-bank nexus continues to endanger the stability of the euro area. We present a proposal how to mitigate spillovers of risks from sovereigns to banks. It encompasses risk-based large exposure limits and risk-adequate capital requirements, with the large exposure limits being most important – both conceptually and empirically. Based on a recent snapshot of […]
Tobias Körner is an economist at the staff of the German Council of Economic Experts since March 2012. He earned a doctorate in economics (Dr. rer. oec.) from the Ruhr Graduate School in Economics/University of Bochum, a degree in economics (Diplom-Volkswirt) from the University of Bonn and a law degree (Diplom-Rechtspfleger (FH)) from FHR North Rhine-Westphalia. His research focuses on financial stability, financial regulation and European economic policy.