balance of three forces: interest rate pass-through, risk shifting, and leverage. When banks can adjust their capital … structures, a monetary easing leads to greater leverage and lower monitoring. However, if a bank's capital structure is fixed …, the balance depends on the degree of bank capitalization: when facing a policy rate cut, well capitalized banks decrease …

credit more than other banks. However, higher and better-quality capital mitigated this effect. Our results suggest that …. Using data from the syndicated loan market, we exploit variation in banks’ reliance on wholesale funding and their … bank credit. We find that banks with strong balance sheets were better able to maintain lending during the crisis. In …

Stability indicators are essential to banks in order to identify instability caused by adverse economic circumstances … can readily be used by individual banks, or by regulators to benchmark financial health across banks. The CSI incorporates … the three key risk factors of Creditworthiness, Conditions and Capital (3Cs), using a traffic light system (green, orange …