, economies whose banking sectors remain well-capitalized experience smaller reductions in bank lending and less pronounced … downturns. Bank capital thus increases an economy's ability to absorb shocks and, in doing so, affects the conduct of monetary … policy. The model is also used to shed light on the ongoing debate over bank capital regulation. -- Transmission of monetary …

, economies whose banking sectors remain well-capitalized experience smaller reductions in bank lending and less pronounced … downturns. Bank capital thus increases an economy's ability to absorb shocks and, in doing so, affects the conduct of monetary … policy. The model is also used to shed light on the ongoing debate over bank capital regulation. …

Bank capital requirements are based on a mix of market values and book values. We investigate the effects of a policy … banking organizations. Our analysis is based on security-level data on individual bank portfolios matched to bond …