, 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 …

liquidity mismatch in banks' balance sheets leads to endogenous bank capital (outside equity) requirements for preventing bank …-cycle dynamics of asset prices, asset illiquidity and bank capital requirements are interconnected. …

In the aftermath of the financial crisis, there is interest in reforming bank regulation such that capital requirements … are more closely linked to a bank's contribution to the overall risk of the financial system. In our paper we compare … capital levels and are not related in a simple way to bank size or individual bank default probability. Systemic capital …

Recent work at the Bank of Canada studied the impact of default in Canada's large-value payments system, and concluded … private sector participants and the Bank from defaults in the payments system. They also gauge the upper bound of possible …

PCSS in Canada and the oversight role of the Bank of Canada with respect to those systems. She also describes one approach …