bank lending to examine what an optimal combination of monetary policy and regulatory capital requirements might look like … that equilibrium level of central bank policy rates should be lower than they had been prior to the crisis. …

the preservation of the central bank’s legitimacy requires that a clear line be drawn between the central bank’s provision … central bank that expose it to material credit risk should be guaranteed by the Treasury. In addition, central banks must …

) focus and diversification using a unique data set that is able to identify individual bank loan exposures to different … deterioration in bank monitoring quality at high levels of risk and a deterioration in bank monitoring quality upon lending … expansion into newer or competitive industries. We find that industrial loan diversification reduces bank return while …

Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …

creating counter-cyclical incentives for banks to raise capital, and so encourage bank lending in bad times. They avoid the …

the proprietary bank-to-bank European interbank dataset extracted from Target2 and also exploit the Lehman and sovereign …

This Paper examines the consequences of interactions between the bank lending channel and the traditional interest rate … system with sterilized intervention and a pure floating rate system, we establish that the bank lending channel can generate … spread between the loan rate and the central bank's intervention rate are found to be a good indicator of amplification and …

behavior following monetary policy shocks. In a first step, we show that the sensitivity of bank profits to interest rates … income gap also predicts the sensitivity of bank lending to interest rates, both for commercial & industrial loans and for … mortgages. Quantitatively, a 100 basis point increase in the Fed funds rate leads a bank at the 75th percentile of the income …