structures mitigated-or amplified-the impact of this risk- off shock. A higher share of funding from non-bank financial …

This paper develops a model of an economy where bank credit supports both productive investment and individual … consumption smoothing in the face of idiosyncratic income risk. Bank credit is constrained by bank equity capital. When policy …-term distortions related to funding equity injections. I calibrate my model and show that the bank equity capital injection that …

This paper studies optimal bank capital requirements in a model of endogenous bank funding conditions. I find that … reason is that a high requirement during the recovery lowers bank shareholder value during the crisis and thus creates …

Countercyclical bank capital requirements have emerged as a popular regulatory tool to help smooth financial cycles …. The idea is to reduce capital requirements when exogenous shocks cause aggregate bank capital to decrease so that …-consistent capital regulation requires that bank capital is rebuilt gradually during financial crises. In particular, banks must be able …

We model bank management actions in severe stress test conditions using a game-theoretical framework. Banks update …

This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank … risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans. We then …

Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence … and prevent bank runs. However, as the experiences of some European countries, most notably Ireland, have demonstrated … rollover risks of a bank and a government, which are connected through the government's guarantee of bank liabilities. We show …