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 …

We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and …

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk …

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 …

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 … the bank. In this case, the shareholders lose part (or all) of the capital that they hold in the bank, the creditors lose …

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 … specifications and emerge for both loan growth at the bank-firm level and the propensity to establish new bank-firm relationships. At …

deposits towards non-deposit liabilities. We find that unobserved timeinvariant bank fixed effects are ultimately the most … important determinant of banks' capital structures and that banks' leverage converges to bank specific, time invariant targets …. -- Bank capital ; capital regulation ; capital structure ; leverage …