We show that systemic risk in the banking sector breeds macroeconomic uncertainty. We develop a model of a production …-driven uncertainty amplifies business cycle volatility and increases risk premia on asset prices. A countercyclical capital buffer lowers …

sense that repo lending increases with risk, while spreads, maturities, and haircuts remain stable. Our comparison across …

Using a unique bank-level dataset, we assess the impact of the Term Auction Facility program on bank liquidity risk … control for potential selection bias. On average, TAF banks exhibit higher ex ante levels of liquidity risk and they … drastically reduce funding liquidity risk in the periods after the rst time they received TAF funds. TAF banks show larger …

The U.S. financial system faces a major, growing, and much under-appreciated threat from the Federal Reserve's risk … requirements — the capital “buffers” to be set aside so banks can withstand adverse events and remain solvent.Risk models are … gaming and often blind to major risks. They have difficulty handling market instability and tend to generate risk forecasts …

This article discusses some policy options that central banks may find useful in dealing with climate change risk in … studies that suggest policy solutions to help central banks and other financial sector regulators deal with the risk that … change capital surcharge; impose a fixed-rate risk capital - based on Tier 2 capital; a reduction in lending to industries …