the design of the loss absorption mechanism affects the stability of bank funding and distinguish between Conversion …. As we show, the first two loss absorption mechanisms unambiguously improve a bank’s stability of funding position. By … uncertainty regarding a bank’s ex post solvency position. Bank managers, investors as well as supervisors and regulators should be …

unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of … regulatory minima. Tighter risk-weighted capital requirements reduce loan supply and lead to an endogenous fall in bank … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure …

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 …We study the effects of interest rate shocks (IRS) on banks’ liquidity creation. A unique supervisory data set from the …

-to-asset ratios, liquidity coverage ratios and regulatory margin calls on the dynamics of loan supply and bank stability. Only … regulatory margin calls or large liquidity coverage ratios achieve bank stability for all risk levels, but for large risks a bank …A bank's decision on loan supply and capital structure determines its immediate bankruptcy risk as well as the future …

In this paper we introduce two measures, the Systemic Liquidity Buffer (SLB) and the Systemic Liquidity Shortfall (SLS …) to assess liquidity in the banking system. The SLB takes an aggregated perspective on liquidity risks in the banking … system. In contrast, the SLS focusses on the problematic banks which suffer a liquidity shortfall. These measures provide an …

between bank regulation and climate policy. Households value the liquidity of deposits, which are protected by deposit … regulation affects liquidity provision to households, bank risk-taking, and loan supply across sectors. Using a calibrated …This paper proposes a quantitative multi-sector DSGE model with bank failure and firm default to study the interactions …

CCyB, especially relative to countries where a bank regulator or the central bank has the authority to set the CCyB. While …

We investigate whether idiosyncratic interbank funding shocks affecting a bank headquarters can trigger a liquidity …-wide freeze. These effects increase in branches' reliance on internal funding and vary depending on banks' access to central bank … emergency liquidity. Our findings suggest that the geographical fragmentation of branches' funding limits their ability to …

observe a broad-based flight to liquidity. The European Central Bank's unconventional monetary policy had a strong impact on … the change in eligibility criteria for collateral in central bank refinancing operations. Our results show that market … liquidity tightened after the Lehman collapse but there is no evidence of fire sales in the German banking sector. Instead, we …