The first part of this report reviews the different channels of transmission of financial shocks (including regulatory changes) highlighted in the literature in the past 15 years. While a very large number of new models have been made available since the Committee's assessment of the long-term...

This paper provides new evidence on the effects of banking sector recapitalization in Nigeria. It set up a simple model of the banking firm, to investigating the impact of capital regulation on banks behavior as well as having possible effects on the economy. Time series data covering the year...

This paper reviews the different channels of transmission of prudential policy highlighted in the literature and provides a quantitative assessment of the impact of Basel III reforms using “off-the-shelf” DSGE models. It shows that the effects of regulation are positive on GDP whenever the...

This paper (i) reviews the different channels of transmission of prudential policy highlightedin the literature and (ii) provides a quantitative assessment of the impact of Basel III reforms using "off-the-shelf" DSGE models. It shows that the effects of regulation are positive on GDP whenever...