Giordana, Gaston; Schumacher, Ingmar - In: Empirical Economics 45 (2013) 2, pp. 905-928
We investigate the leverage cycle in Luxembourg’s banking sector using individual bank-level data for the period 2003 Q1–2010 Q1. One of our findings is that Luxembourg’s banks have a procyclical leverage. This procyclicality is not due to marking-to-market but because Luxembourg’s banks...