contract their balance sheets. These bank responses generate externalities that propagate in the form of macro … macro-financial feedback loops can significantly affect macroeconomic outcomes and bank-specific stress tests results. The … heterogeneity in bank lending responses matters: it determines how each bank fares under adverse conditions and the external effects …

An important role for bank capital is that of a buffer against unexpected losses. As uncertainty about these losses … increases, the theory predicts an increase in the optimal level of bank capital. This paper investigates this implication … reduction in bank capital ratios of slightly over 1 percentage point. However, I also find suggestive evidence that the …

supply factors, both for the whole 1993-2010 period and during periods of financial instability. Using bank-level panel data …

due to bank funding shortages from the sovereign debt crisis were a major factor behind the lending slowdown in late 2011 …

The level of a bank‘s capitalization can effectively transmit information about its riskiness and therefore support …

examines one particular channel at work: the supply of credit. It presents a model in which a bank, even if managed by risk …

Determinants of bank-level credit growth in Saudi Arabia are investigated by applying a panel approach to data spanning … 2000-15. Strong bank balance sheet conditions, economic activity, and oil prices support bank lending. Reduced bank … concentration appears to have helped. Lending remained robust in 2015 despite oil prices having declined, helped by strong bank …

This paper offers novel evidence on the impact of raising bank capital requirements in the context of an emerging … market: Peru. Using quarterly bank-level data and exploiting the adoption of bank-specific capital buffers, we find that … higher capital requirements have a short-lived, negative impact on bank credit in Peru, although this effect becomes …