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 …

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. …

Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence … and prevent bank runs. However, as the experiences of some European countries, most notably Ireland, have demonstrated … rollover risks of a bank and a government, which are connected through the government's guarantee of bank liabilities. We show …

This paper analyzes the design of simple macroprudential rules for bank and non-bank credit markets in a medium … rule implies near price stability, while the optimal macroprudential policy rule stabilizes bank credit and bond volumes …. Second, there is no trade-off between price and financial stability. Third, if the central bank cannot correctly identify a …