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

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 …

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 …

In the aftermath of the financial crisis, there is interest in reforming bank regulation such that capital requirements … are more closely linked to a bank's contribution to the overall risk of the financial system. In our paper we compare … capital levels and are not related in a simple way to bank size or individual bank default probability. Systemic capital …

-efficient allocation that limits bank size. …