question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential …

question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential …

I show how capital regulations, by imposing a low or zero cost on undrawn credit lines, can lead to ex post … misallocation of credit across different borrowers following a market shock. This effect is in addition to the liquidity impact of … credit line drawdowns highlighted by previous literature. In a theoretical model, I examine why capital regulations give the …

"credit run"). A credit run affects the asset correlation, which is one of the main parameters in the Internal Ratings … correlation, which is a fundamental part of the theoretical foundation of the IRBA, but also shows that a credit run increases the …

deteriorated credit ratings in economic downturns. We focus on the role of bank loan commitments, which have been increasingly … commitments channel." We find that, as firms draw down more from their pre-existing credit lines when credit market conditions are … quantitatively important and needs to be addressed in designing the regulatory framework for reducing credit procyclicality …

While regulatory capital buffers are expected to be drawn to absorb losses and meet credit demand during crises, this …-cyclical behaviour to preserve capital ratios. By employing granular data from the credit register of the European System of Central … Banks, we isolate credit supply effects and find that banks with little headroom above regulatory buffers reduced their …

show a shock to the marked-to-market (MTM) value of bank exposures to sovereign debt led to credit tightening in 2010 … to market, I explore the transmission channels of the unrealized losses on credit supply. I show that a shock to MTM …