activities of Canadian banks. Using panel data for the six largest Canadian banks and their foreign activities in up to 94 …-pointtightening announcement in a foreign CCyB, the growth rate of cross-border lending between Canadian banks' head offices and borrowers in CCyB … also subjects foreign banks to domestic regulation, the direction of this effect differs from that of other forms of …

This paper studies optimal bank capital requirements in a model of endogenous bank funding conditions. I find that … requirements should be higher during good times such that a macroprudential "buffer" is provided. However, whether banks can use … reason is that a high requirement during the recovery lowers bank shareholder value during the crisis and thus creates …

banks attract cheaper deposit funding and require less capital. With a noisy signal, risk-sensitive capital regulation can … implement a separating equilibrium in which low-quality banks do not participate. We show that the degree of risk sensitivity is …

-consistent capital regulation requires that bank capital is rebuilt gradually during financial crises. In particular, banks must be able …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 …

-party investors increase the insolvency risk of banks. This is particularly likely if a bank sells the senior tranche and retains a … sufficiently large firstloss position. The results do not rely on banks increasing leverage after the risk transfer, nor on banks …

explore the macroeconomic implications of various types of countercyclical bank capital regulations. Results suggest that … shocks. Moreover, the bank capital regulatory policy and monetary policy interact, and this interaction is contingent on the …. Compared to bank capital regulatory policy, monetary policy is able to stabilize the economy more efficiently after real shocks …

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 …

traditional and shadow banks in the United States from 2009 to 2019. On average, shadow and traditional banks exhibit only a …, shadow banks transmit marginally 35 basis points (bps) more, whereas traditional banks transmit marginally 25 bps less in … response to a monetary policy surprise of more than 100 bps. Lastly, banks serve different parts of the mortgage rate …