, in a settlement system similar to the LVTS T2. Although it is widely believed that closure of one bank is imminent, the …

payment obligations must settle on the Bank of Canada's books, with payments made through the LVTS. CDSX settlement payments …

, economies whose banking sectors remain well-capitalized experience smaller reductions in bank lending and less pronounced … downturns. Bank capital thus increases an economy's ability to absorb shocks and, in doing so, affects the conduct of monetary … policy. The model is also used to shed light on the ongoing debate over bank capital regulation. …

relationship between banks and their depositors. As a result, bank capital and entrepreneurial net worth jointly determine … friction that banks face is reduced or eliminated. After documenting that the bank capital-asset ratio is countercyclical in …

This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank … risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans. We then …

One way of internalizing the externalities that each individual bank imposes on the rest of the financial system is to … information on interbank exposures. A relatively small bank playing an outsized role in the interbank market might be more … systemic, and thus garner a higher capital surcharge, than a less-connected bank of somewhat larger size. Alternatively, if the …

This paper assesses the merits of countercyclical bank balance sheet regulation for the stabilization of financial and … equilibrium model with banks and bank capital, in which bank capital solves an asymmetric information problem between banks and …, though banks do not internalize this impact. Regulation, in the form of a constraint on bank leverage, can mitigate the …