illiquidity disadvantages of holding risky assets. We then empirically estimate the effect of two liquidity regulations on bank … decrease a bank's incentive to take risk with its remaining ineligible assets. A greater capacity to respond to liquidity … stress increases the potential profits a bank would put at stake by making risky investments, but it also mitigates the …

models used at the European Central Bank, that in the long run, a 1% bank capital requirement increase has a small impact on … transmission mechanism. Higher bank leverage increases the economy's vulnerability to shocks but also monetary policy's ability to …

We study the impact of increasingly negative central bank policy rates on banks' propensity to become undercapitalized …

Switzerland. For identification, we compare changes in the behavior of banks that had different fractions of their central bank …

Using news-based government economic policy uncertainty (EPU) index of Baker et al. (2016) and bank-level data from 17 … with interest rates on bank gross loans. Specifically, a one standard deviation increase in EPU leads to 21.84 basis points … increase in average interest rates on bank gross loans. We conjecture the economic policy uncertainty boosts banks' loan prices …

how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the …

We study the impact of increasingly negative central bank policy rates on banks' propensity to become undercapitalized …

how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the …

how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the …

address the following questions. How are macroeconomic shocks transmitted to bank risk and other banking variables? What are … the sources of bank heterogeneity, and what explains differences in individual banks’ responses to macroeconomic shocks …? Our paper has two main findings: (i) Average bank risk declines, and average bank lending increases following expansionary …