Eurozone banks from 2011 to 2015 had less access to interbank finance if they held large amounts of non-performing loans, a working paper published by the Federal Reserve of Boston says. 

In Bad sovereign or bad balance sheets? Euro interbank market fragmentation and monetary policy, 2011–15, Silvia Gabrieli and Claire Labonne look at data from the eurozone.

The authors’ dataset combines interbank loan data with information on banks’ exposure to different sectors and countries. They examine