balance of three forces: interest rate pass-through, risk shifting, and leverage. When banks can adjust their capital …We provide a theoretical foundation for the claim that prolonged periods of easy monetary conditions increase bank risk … taking. The net effect of a monetary policy change on bank monitoring (an inverse measure of risk taking) depends on the …

data on U.S. firms from 1990 to 2011, it was found that the share of physical capital in assets has a strong influence on …

credit more than other banks. However, higher and better-quality capital mitigated this effect. Our results suggest that …

institution’s credit worthiness and the return on its market value, and importantly, on the level and quality of capital …. Similarly, market factors such as the level of investor risk appetite, as well as shocks to financial markets—notably the US … steps taken to increase resilience, notably higher capitalization. Our results suggest increased capital buffers may …