We develop a model of banking industry dynamics to study the quantitative impact of capital requirements on bank risk … taking, commercial bank failure, and market structure. We propose a market structure where big, dominant banks interact with … banks' buffer stocks of securities. We test the model using business cycle properties and the bank lending channel across …

bank risk taking, commercial bank failure, interest rates on loans, and market structure. We propose a market structure … addition to aggregate shocks to the fraction of performing loans in their portfolio. A nontrivial bank size distribution arises … consistent with untargeted business cycle properties, the bank lending channel, and empirical studies of the role of …

We develop a model of banking industry dynamics to study the quantitative impact of regulatory policies on bank risk … in their portfolio. A nontrivial bank size distribution arises out of endogenous entry and exit, as well as banks’ buffer … stock of net worth. We show the model predictions are consistent with untargeted business cycle properties, the bank lending …

bank risk taking, commercial bank failure, interest rates on loans, and market structure. We propose a market structure … addition to aggregate shocks to the fraction of performing loans in their portfolio. A nontrivial bank size distribution arises … consistent with untargeted business cycle properties, the bank lending channel, and empirical studies of the role of …