Bibliografie

(eng): 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.