We contribute to the empirical literature on the impact of shocks to bank capital in the euro area by estimating a … economy, namely a demand shock and a shock to bank capital. The main findings of the paper are as follows: i) Impulse …-response analysis shows that in response to a shock to bank capital, banks boost capital ratios by reducing their relative exposure to …

the introduction of negative deposit rates by the European Central Bank in June 2014 and a novel securities register for …

How do capital and liquidity buffers affect the evolution of bank loans in periods of financial and economic distress … relates macroeconomic aggregates to individual bank balance sheet items and interest rates. We find that banks with high … liquidity buffers also affect bank responses to monetary policy shocks. High bank capitalisation reduces the degree to which …

demand schedule of the representative bank is relatively flat around the middle of the interest rate corridor set by the … standing facilities. This suggests that liquidity effects on the overnight inter-bank rate should be very muted on this day …. Our calibration exercise suggests that the probability of an individual bank's daily overdraft in the euro area is very …