This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk … capital and therefore increased lossabsorbing capacity, thereby leading to more stable banks. These theoretical predictions …

natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by … sovereign debt crisis. An unexpected increase in capital requirements for a subset of Portuguese banks in 2011 provides a …

explain about two-thirds of the variation of bank capitalization over the business cycle. We estimate that provisioning …

additional capital requirements in the form of G-SIB buffers. The effects are stronger for banks with higher incentives to reduce …

We study the impact of higher bank capital buffers, namely of the Other Systemically Important Institu- tions (O …' resilience. However, higher capital requirements associated with the policy may likely constrain lending. While this may be a … the relative attractiveness of different asset classes, a higher capital requirement could also lead to risk-shifting and …

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 …

competitively price loans. A tight capital requirement on the bank reduces risk-shifting and decreases bank leverage, reducing the … the non-bank sector mutes the long run impact of raising capital requirements. Increasing the capital requirement from 8 …I analyze the impact of raising capital requirements on the quantity, composition, and riskiness of aggregate …

How far should capital requirements be raised in order to ensure a strong and resilient banking system without imposing … undue costs on the real economy? Capital requirement increases make banks safer and are beneficial in the long run but also … strength of monetary policy accommodation and the degree of bank riskiness are key determinants of the trade-off between the …

the bank. In this case, the shareholders lose part (or all) of the capital that they hold in the bank, the creditors lose …We develop a structural model for valuing bank balance sheet components such as the equity and debt value, the value … for the government when the bank is operated by private shareholders including the present value of a possible future …

reallocates mostly towards safer producers. Lending standards propagate bank capital shortfalls through labor misallocation … increasing. Finally, with endogenous lending standards, first-moment bank capital shocks look like second-moment shocks. …