This paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market … imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself … introduced through a signaling effect of capital buffers on the cost of bank deposits. The macroeconomic effects of various …

This paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market … imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself … introduced through a signaling effect of capital buffers on the cost of bank deposits. The macroeconomic effects of various …

This paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market … imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself … introduced through a signaling effect of capital buffers on the cost of bank deposits. The macroeconomic effects of various …

different impairment rules and their potential effect on bank income and lending, a migration model simulates the “incurred loss … volatility of bank profits and lending without reducing accounting transparency …

This paper examines bank portfolio management under banking regulation and asymmetric information about borrower types … and screening by banks and imperfect competition in the credit market. A bank tries to maximize expected profits subject … to a portfolio variance constraint. The analysis yields the following results: For a monopoly bank, the incentive …