The potential impact of banking crises on public finances: an assessment of selected EU countries using SYMBOL

Campolongo F;Marchesi M;DE LISA, RICCARDO

2011-01-01

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Abstract

This paper presents an aplication of the SYMBOL model, which was recently developed by the EC. In this application, we assessed the potetntial imapct of a crisis in the banking sector on pulic finances in four EU member staes chosem as examples. Results show that two member states have a relatively higher probability of being in a situation where government finances have to cover losses generated in the banking system.