this policy through banks. This paper examines the role of bank liquidity, capitalization and market power as internal … monetary policy change on bank performance is also considered. The empirical analysis, using large panel datasets for the … rates by disaggregating down to the individual bank level. This is achieved by the use of a Local GMM technique that also …

area (EA) by including financial frictions and country-specific banking sectors. In this new version of the model, termed … by financial shocks, (2) the financial sector can amplify the transmission of (real) shocks, and (3) the financial/banking … shocks and the banking sectors can be sources of business cycle asymmetries and spillovers across countries in a monetary …

(2013), featuring a segmented banking sector, is estimated for the euro area and combined with a bank portfolio optimisation … programme. We analyse the macroeconomic effects of the Asset Purchase Programme via the banking system, exploiting the cross …-section of individual bank portfolio decisions. For this purpose, an augmented version of the DSGE model of Gertler and Karadi …

-run supply of bank credit. As U.S. bond rates have fallen, the pass-through of monetary shocks to loan and deposit rates has … weakened while the spread on U.S. bank loans has risen. I build a model in which banks earn deposit and loan spreads, deposits … dampened at low rates, because deposit spreads act as a better hedge for bank equity against unexpected monetary shocks. In the …

We augment a standard monetary DSGE model to include a banking sector and financial markets. We fit the model to Euro …

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 …

We consider a standard banking model with agency frictions to simultaneously study the weakening and reversal of …

Why should monetary policy 'lean against the wind'? Can't bank regulation perform its task alone? We model banks that … choose both asset volatility and leverage, and identify how monetary policy transmits to bank risk. Subsequently, we … introduce a regulator whose tool is a risk-based capital requirement. We derive from welfare that the regulator trades off bank …