Countercyclical capital buffers (CCyBs) are an old idea recently resurrected. CCyBs compel banks at the core of …. To gauge the potential impact of modern CCyBs, we compare the behavior of large and highly-connected commercial banks … during booms before the Great Depression and Great Recession. Before the former, core banks did not expect bailouts and were …

We study a modification of the Diamond and Dybvig (1983) model in which the bank may hold a liquid asset, some … depositors see sunspots that could lead them to run, and all depositors have incomplete information about the bank's ability to … survive a run. The incomplete information means that the bank is not automatically incentivized to always hold enough liquid …

We propose a theory of regulatory arbitrage by banks and test it using trust preferred securities (TPS) issuance. From … 1996 to 2007, U.S. banks in the aggregate increased their regulatory capital through issuance of TPS while their net … issuance of common stock was negative due to repurchases. We assume that, in the absence of capital requirements, a bank has an …

where banks operate globally. Using U.S. micro-banking data for the first quarter of 2000 through the third quarter of 2013 … subsidiaries of foreign banks. Second, a foreign tightening of capital requirements shifts lending by U.S. global banks away from … regulation reduces lending by large U.S. global banks to foreign residents …

Can macroprudential foreign exchange (FX) regulations on banks reduce the financial and macroeconomic vulnerabilities … regulations, we develop a parsimonious model of bank and market lending in domestic and foreign currency and derive four … FX regulations: (1) are effective in terms of reducing borrowing in foreign currency by banks; (2) have the unintended …

margins and overhead costs using data on over 1,400 banks across 72 countries while controlling for bank …This paper examines the impact of bank regulations, market structure, and national institutions on bank net interest …-specific characteristics. The data indicate that tighter regulations on bank entry and bank activities boost the cost of financial …