requirement regulation. UK banks were subject to both time-varying capital requirements and changes in interest rate policy …We use data on UK banks' minimum capital requirements to study the interaction of monetary policy and capital …. Tightening of either capital requirements or monetary policy reduces the supply of lending. Lending by large banks reacts …

type of international co-ordination, specifically reciprocity in capital requirement regulation, which is embedded in Basel …What kinds of credit substitution, if any, occur when changes to banks' minimum capital requirements induce banks to … in the wake of the global financial crisis, under which minimum capital ratio requirements for banks will be employed to …

We develop a theory of bank liquidity (cash reserve) requirements. Because cash is both observable and riskless …, greater cash holdings improve bank incentives to manage risk in the remaining, non-cash portfolio of risky assets. In a model … with a single bank, cash is held voluntarily to stem depositors' incentives to withdraw funds early in response to adverse …