We analyze the effect of bank capital requirements on the structure and risk of a financial system where markets …, regulated banks, and shadow banks coexist. Banks face a moral hazard problem in screening entrepreneurs' projects, and they … the market and riskier entrepreneurs borrow from banks. But risk-insensitive (sensitive) requirements are especially …

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …

, particularly in Germany and the US, than savings and cooperative banks … approach is able to measure competition of bank market segments, such as the loan market, whereas many well-known measures of … competition can consider the entire banking market only. A caveat of the Boone-indicator may be that it assumes that banks …

resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account … reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … applications for the same loan, weak banks are less likely to grant the loan. Our results suggest that firms cannot offset the …

This paper uses a unique dataset where credit rejections experienced by euro area firms are matched with firm and bank … characteristics. This allows us to study simultaneously the role that bank and firm weakness had in the credit reduction observed in … strong determinants of credit rejections, in the crisis period bank weakness made it harder to obtain external finance for …

crisis. We propose a macro-finance model featuring both traditional and shadow banks subject to funding risk. When banks are … well capitalized, they have access to money markets and efficiently mitigate funding shocks. When aggregate bank capital is … low, a vicious cycle arises between declining asset prices and funding risks. The central bank can partially counter these …

institutions, or shadow banks, may not fall under their jurisdiction. We study the effects of tightening commercial bank regulation … requirements on commercial banks increase shadow bank lending, which may have adverse financial stability effects. Coordinating …Macroprudential policies are often aimed at the commercial banking sector, while a host of other non-bank financial …