Are Banks Still a Risk Source for Stock Market? Some Empirical Evidences

The global financial crisis of 2008 proved that what initially appeared to be relatively small losses in the system can magnified systemic ones. European Union debt has thus revived interest interdependence across different markets, especially sovereign markets and banking sector, interlinkages among idiosyncratic common shocks. This paper analyzes evolution over time incidence shocks on main Italian groups starting from period Central Bank’s Quantitative Easing program. Results show sector is no longer perceived by as a risk source, overcoming negative picture coming 2008–2009. analysis also suggests broadly affected ECB monetary policy, linked recapitalization processes.