This paper reviews studies exploring how higher bank capital requirements affect economic growth. There is little … evidence of a direct effect; research focuses on the indirect effects of capital requirements on credit supply, bank asset risk …, and cost of bank capital, which in turn can affect economic growth. Banks facing higher capital requirements can reduce …

the largest Dutch banks over the period January 2004 to April 2010. The dynamic interrelations among instruments of bank … wholesale lending. Second, banks hoard liquidity in the form of liquid bonds and central bank reserves. Third, banks conduct …

of a major international bank to third-country counter parties during the recent crisis may thus result in persistently … lower volumes of outward FDI from the bank's home market. …

Traditional theory suggests that high franchise value limits bank risk-taking incentives. Then why did many banks with … paper attempts to reconcile theory and evidence. We consider a setup where a bank takes risk by levering up, to invest in … risky market-based instruments. High franchise value allows the bank to borrow more, so it can take risk on a larger scale …

spreads declined in response to the disclosure of stress test results. We also find that bank systematic risk, as measured by …

. Negative media reports, falling stock prices, and opaque product information also affect trust in banks. Experiencing a bank … bailout leads to less concern about government intervention, while experience of a bank failure leads to greater concern on …

value theory. In contrast to previous studies, the method does not assume specific dependence structure among bank equity …