The business cycle effects of bank capital regulatory regimes are examined in a New Keynesian model with credit market … imperfections and a cost channel of monetary policy. Key features of the model are that bank capital increases incentives for banks …

The business cycle effects of bank capital regulatory regimes are examined in a New Keynesian model with credit market … imperfections and a cost channel of monetary policy. Key features of the model are that bank capital increases incentives for banks …

The business cycle effects of bank capital regulatory regimes are examined in a New Keynesian model with credit market … imperfections and a cost channel of monetary policy. Key features of the model are that bank capital increases incentives for banks …

Business cycles imply liquidity risks for banks. This paper explores how these risks influence bank lending over the … cycle. With forward-looking banks, lending cycles, credit booms and busts, or suppressed and highly fragile bank systems can … unpleasant effects on bank lending. Imposing countercyclical capital adequacy ratio may amplify procyclicality or result in …