We estimate the effect of changes in microprudential regulatory capital requirements on bank capital ratios and bank … lending. We do so by running panel regressions using a rich new data set, exploiting variation in individual bank capital … 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 …

Evidence abounds on the propagation of financial stresses originating in the US mortgage market to banking systems … 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 …

This paper assesses how shocks to bank capital may influence a bank’s portfolio behaviour using novel evidence from a … UK bank panel data set from a period that pre-dates the recent financial crisis. Focusing on the behaviour of bank loans …, 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 …, regulators have imposed time-varying, bank-specific minimum capital requirements since Basel I. Over the 1998-2007 period, UK …

this shock by aggregating bank-to-bank cross-border credit flows and by using the external instrumental variable approach …