The typical portrait of monetary policy has the banks and the money supply being manipulated through changes in bank … reserves. However, with only a small portion of bank deposits now subject to reserve requirements, an alternative explanation … requirements for monetary policy. In particular, we identify a "bank balance-sheet channel" of monetary policy, which operates …

This paper investigates the impact of the new capital requirements introduced under the Basel III framework on bank … lending rates and loan growth. Higher capital requirements, by raising banks’ marginal cost of funding, lead to higher … lending rates. The data presented in the paper suggest that large banks would on average need to increase their equity …

, reduced role of securities markets, imperfect competition in the banking sector and the resulting high cost of bank lending to … private firms, the traditional channels (interest rate, bank lending, and asset price) are impaired in LICs. The exchange rate … channel is also undermined by central bank intervention in the foreign exchange market. These conclusions are supported by …

policy surprises, we do not detect clear effects of monetary easing on bank stock valuation but find a deterioration of … medium-term bank credit risk in the United States, the euro area, and the United Kingdom. Second, in panel regressions using … U.S. banks’ balance sheet information, we show that bank profitability and risk taking are ambiguously affected, while …

credit growth experienced by these countries. We find that, on average, both bank capitalization and lending activities in …