financial intermediaries trade in securitised assets. We analyse the responses of aggregate activity, credit supply and credit … institutions affect credit dynamics; high leverage in the shadow banking system makes the economy excessively vulnerable to …

lending. We do so by running panel regressions using a rich new data set, exploiting variation in individual bank capital …We estimate the effect of changes in microprudential regulatory capital requirements on bank capital ratios and bank … mostly recovers within three years. While estimated over a different policy regime and at the individual bank level, these …

the aggregate bank capital requirement during an economic upswing is associated with a reduction of lending, with the …

bank lending is surprisingly underexamined, given the central importance ascribed to this channel of contagion by … quarterly to the Bank of England. I find that the shock to foreign funding caused a substantial pullback in domestic lending …

UK bank panel data set from a period that pre-dates the recent financial crisis. Focusing on the behaviour of bank loans …This paper assesses how shocks to bank capital may influence a bank’s portfolio behaviour using novel evidence from a …, we extract the dynamic response of a bank to innovations in its capital and in its regulatory capital buffer. We find …

The regulation of bank capital to improve the resilience of the financial system and, related to this aim, as a means … of smoothing the credit cycle are central elements of forthcoming macroprudential regimes internationally. For such … regulation to be effective in controlling the aggregate supply of credit: (i) changes in capital requirements need to affect loan …

Using a panel of UK firms spanning three decades, we provide estimates of the long-run elasticity of substitution … group panel methods. The robust result is that the elasticity is in the region of 0.4. This is consistent with previous …