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Voyages and travels --- Pictorial works --- China in art. --- China --- Description and travel. --- History
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The outbreak of the financial crisis in 2007 leads to a dramatic increase in the level and volatility of European interbank market risk premium. According to the exist researches, two main factors are investigated in this paper: credit risk and market liquidity. Besides, more international variables are introduced. Before the crisis, the credit risk proxied by CDS spreads is found to have a significant influence on the widening of EURIBOR-EONIA spreads. After Aug 2007, the main determinants of European interbank risk premium are international variables such as US risk premium and exchange risk. The credit risk is found to have a significant but small effect, and there is little evident that the liquidity has effect on the widening of the interbank risk premium.
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