aftermath of the financial crisis, the regulatory response concentrated on the Basel III recommendations, raising core capital …

capital requirements for banks under the Basel regimes, especially Basel III and its Countercyclical Capital Buffers (CCB …

for banks. Bank lending behavior responds significantly to reserve requirements and liquidity positions. Our analysis … allows us to identify a new channel that we name as the "liquidity channel". The channel works through a decline in bank … liquidity and loan supply due to an increase in reserve requirements. …

contraction in credit and to liquidity spirals. Subsequent measures by policymakers can be interpreted as attempts to avoid …