College) gave the SUERF 2015 Annual Lecture on Capital and Banks. The conference focused on core aspects of banking reform …

provisions tend to be more procyclical at larger and better capitalized banks. The procyclicality of loan loss provisions can … explain about two-thirds of the variation of bank capitalization over the business cycle. We estimate that provisioning …

We propose an improved methodology for modelling potential scenario paths of banks' riskweighted assets, which drive … the denominator of capital adequacy ratios. Our approach centres on modelling the internal risk structure of bank … unjustifiably high or low solvency measures and induce false perceptions about banks' financial health. The proposed methodology is …