monetary policy tightens, nonbanks increase dollar credit supply to non‑US corporate borrowers, relative to banks. This … to banks) reduces the volatility in capital flows and economic activity associated with the global financial cycle …

Recent empirical evidence based on microdata panels indicates the importance of banks' balance sheets for the monetary … may be an important part of the monetary transmission mechanism, particularly when there are large, direct shocks to banks …

(ECL) on the cyclicality of loan write-off losses, loan loss provisions (LLPs) and capital ratios of banks, relative to the … probabilities of defaults (PDs) between booms and busts cause sharp increases in LLPs in deep downturns, as seen for US banks during …

Systemic risk is a key concern for central banks charged with safeguarding overall financial stability. In this paper … are composed of a number of banks that are connected by interbank linkages. We then vary the key parameters that define … the structure of the financial system - including its level of capitalisation, the degree to which banks are connected …

regulator finds it ex-post optimal to bail out some or all failed banks, whereas when the number of bank failures is small …, failed banks can be acquired by the surviving banks. This gives banks incentives to herd and increases the risk that many … banks may fail together. The ex-post optimal regulation may thus be time-inconsistent or sub-optimal from an ex …