the Basel II agreement on the pro-cyclicality of bank lending and firms' access to funds during a recession. In response …

, we show that the economic impact of changes in bank capital requirements depends on the state of the macro …, the impact on bank loan supply works through a ”pricing channel” which is small: around 0.1% less loans for a 1pp increase …

quantitative models in a new perspective. This knowledge may prove valuable for regulators who aim to understand bank behaviour and …

products. We find that a bank’s operational efficiency is priced in bank loan rates and alters interest-setting behavior … frontier analysis to comprehensively capture cost efficiency, we take the bank customers’ perspective and demonstrate the … ; bank efficiency ; cost efficiency ; stochastic frontier analysis …

minimum standard is unlikely to exhibit adverse consequences for credit supply and bank profitability. …

requirements. We find that an increase in the bankspecific regulatory capital requirement results in a higher bank capital ratio … and higher bank leverage. We do not observe differences between confidential and public disclosure of capital requirements …. Our results empirically illustrate a tradeoff between bank resilience and a fostering of the economy through more bank …