' tightening on bank probabilities of default is positive albeit statistically insignificant, suggesting that risk-taking may crowd …

trends. When shocks hit their profits, banks tend to adjust retained earnings to smooth dividends. This generates bank equity …

We study the impact of higher bank capital buffers, namely of the Other Systemically Important Institutions (O …

We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and …

natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …

We develop a structural model for valuing bank balance sheet components such as the equity and debt value, the value … for the government when the bank is operated by private shareholders including the present value of a possible future … the bank. In this case, the shareholders lose part (or all) of the capital that they hold in the bank, the creditors lose …

individual banking groups to study the propagation of bank capital shocks to the economy. We conduct various simulations with the … model to assess how capital ratio shocks influence bank credit supply and aggregate demand. We distinguish between …