Equity returns in the banking sector in the wake of the Great Recession and the European sovereign debt crisis

• Published in: Journal of financial stability Vol. 16; pp. 164 - 172
• Main Authors: Chan-Lau, Jorge A., Liu, Estelle X., Schmittmann, Jochen M.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.02.2015
• Subjects: Banks equity returns; Economic growth; Financial crisis; Regulatory capital; Sovereign debt crisis; Sovereign debt crisis; Regulatory capital; Economic growth; G21; G01; G14; Banks equity returns; Financial crisis

•The paper analyzes the impact of sovereign risk, economic growth prospect, and funding conditions on equity performances.•It finds that equity returns have reflected mainly weak growth prospects and large exposure to peripheral bonds.•Banks with better capitalization, lower leverage and low relianc...