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

Using novel data on individual euro area banks' balance sheets this paper shows that exposure to stressed European … debt crisis on the supply of private sector credit is assessed. Controlling for banks' risk factors and credit demand, the … households, is documented for euro area banks affected by the international liquidity shock and that drew on ECB liquidity under …

Global liquidity refers to the volumes of financial flows - largely intermediated through global banks and non … liquidity provision. Strong prudential policies in the home countries of global banks and official facilities reduce funding …

Global banks use their global balance sheets to respond to local monetary policy. However, sources and uses of funds … are often denominated in different currencies. This leads to a foreign exchange (FX) exposure that banks need to hedge. If … that, in response to domestic monetary policy easing, global banks increase their foreign reserves in currency areas with …

When central banks adjust interest rates, the opportunity cost of lending in local currency changes, but—in absence of … frictions—there is no spillover effect to lending in other currencies. However, when equity capital is limited, global banks …

Global banks use their global balance sheets to respond to local monetary policy. However, sources and uses of funds … are often denominated in different currencies. This leads to a foreign exchange (FX) exposure that banks need to hedge. If … that, in response to domestic monetary policy easing, global banks increase their foreign reserves in currency areas with …