Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank …

range of crises, including banking, balance-of-payments, and sovereign debt crises. It reviews the typical patterns prior to …

country risk component. Country risk is affected by fundamental shocks but, through the presence of working capital, also …

Exploiting the Japanese banking crisis as a laboratory, we provide firm-level evidence on the real effects of bank …

the IMF concerning the Asian financial crisis. Borrowers of foreign capital are bound by lending contracts to pay the …, since the shock makes the marginal product of capital fall to less than the world rate of return, and creates a debt … reduce capital to its new lower level, at which point there would no longer be a debt overhang. We describe this as the `IMF …

Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This … paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of …

We analyze securities trading by banks and the associated spillovers to the supply of credit. Empirical analysis has … investments of banks at the security level for 2005-2012 in conjunction with the credit register from Germany. Analyzing data at … are largest for trading-expertise banks with higher capital and in securities with lower rating and long-term maturity. In …

In this paper, we introduce a new requirement for bank capital: banking-on-the-average rules. Under these rules a bank … on other banks. In addition, banking-on-the-average rules ensure the build-up of bank equity capital in booms and thus …’s required level of equity capital is monotonically increasing in the realized equity capital of its peers. In a simple model we …