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 …

Using granular data from the European corporate credit register, we examine how increases in macroprudential capital … buffer requirements since the pandemic have affected bank lending behaviour in the euro area. Our findings reveal that, for … the average bank, the buffer requirement increases did not have a statistically significant impact on lending to non …

We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and … liquidity structures and analyses the effects of changes in regulatory capital and liquidity requirements as well as their …

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 …

We assess the impact on bank bond holdings of regulatory changes in the requirements for bail-inable liabilities …) induced banks to increase their holdings of eligible bank bonds, especially if issued by other banks. The requirement for own … debt issued by global systemically important banks. Finally, we find evidence of increased within-country bank …

How do banks set their target capital ratio? How do they adjust to reach it? This paper answers these questions using … an original dataset of capital ratio targets directly announced to investors by European banks, materially improving data … capital requirements and a procyclical behavior consistent with market pressure. Second, banks do not distinguish between the …

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

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 …