This study focuses on the impact of capital constraints on the credit structure of commercial banks. Through theoretical modeling and optimization process, this study draws the conclusions that large-sized banks would grant more loans to large-sized enterprises and fewer loans to small-sized...

The Fed’s Operation Twist (OT) is a variation of conventional open-market operations. However, as an unconventional monetary policy, its transmission mechanism and effectiveness need further exploration. In this paper, a macro-economic system is set up, which not only includes the central...