The role of bank capital as a propagation channel of shocks is strongly pronounced in recent macroeconomic models. In … this paper, we show how the evolution of bank capital depends on the share of non-state-contingent assets in banks’ balance …

interest margin (NIM) and its components, retail lending and retail deposit rates. Using two proprietary bank-level data sets …

competition. Here, we employ a novel approach to account for IRS that are both unexpected and effective for a bank’s business … theory that monopolistic firms undersupply the market when utilizing their high pricing power in the bank competition …–liquidity creation nexus. While positive IRS per se lead to an increase in bank liquidity creation, we find that a high bank …

Central Bank’s policy-rate cuts in mid-2014. The pass-through of the rate cuts to banks’ funding costs differs across the euro … provide a simple model of an augmented bank balance-sheet channel where in addition to costly external financing, there is …