The purpose of this paper is to analyze the leverage ratio requirement as currently considered by the Basel Committee on Banking Supervision from both theoretical and empirical perspectives. The key concept in this paper is the asset quality index, which is obtained by dividing the risk-based...

We evaluate the effects of post-crisis liquidity regulation on the U.S. banking system. We find that regulated banks have substantially improved their liquidity ratios by holding more liquidity buffers and terming out their liabilities. However, some liquidity transformation has migrated to...

In 2010, the Basel Committee on Banking Supervision published an assessment of the long-term economic impact (LEI) of stronger capital and liquidity requirements. This paper considers this assessment in light of estimates from later studies of the macroeconomic benefits and costs of higher...

We examine the issue of the appropriate selection of macroprudential instruments according to the vulnerabilities identified and the policymakers' objectives using a version of the 3D DSGE model following Mendicino et al. (2020) and Hinterschweiger et al. (2021) calibrated for the euro area. We...

Weaknesses at large financial institutions have often played a central role in the triggering and propagation of systemic financial crises. The 2007-09 financial crisis was only the most recent example. Since the crisis, authorities worldwide have sought ways to strengthen regulation and...

The Macroeconomic Assessment Group (MAG) was established in February 2010 by the chairs of the Financial Stability Board and Basel Committee on Banking Supervision to coordinate an assessment of the macroeconomic implications of the Basel Committee's proposed reforms. The membership of the MAG...