Abstract
ABSTRACT: This paper sets out to explain why Spain experienced a full-fledged sovereign debt crisis and had to resort to euroarea financial assistance for its banks, whereas Italy did not. It undertakes a structured comparison, dissecting the sovereign debt crisis into a banking crisis and a balance of payments crisis. It argues that the distinctive features of bank business models and of national banking systems in Italy and Spain have considerable analytical leverage in explaining the different scenarios of the crises in each country. This ‘bank-based’ analysis contributes to the flourishing literature that examines changes in banking with a view to account for the differentiated impact of the global banking crisis first and the sovereign debt crisis in the euroarea later.
| Original language | English |
|---|---|
| Pages (from-to) | 485-507 |
| Number of pages | 23 |
| Journal | REVIEW OF INTERNATIONAL POLITICAL ECONOMY |
| Volume | 22 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 4 May 2015 |
Keywords
- bank business models
- banking crisis
- euroarea crisis
- financial crisis
- Italy
- sovereign debt crisis
- Spain
