equilibrium elasticity of bank loan supply with respect to bank capital. Although the targeted elasticity is remarkably different …In the presence of financial frictions, banks' capital position may constrain their ability to provide loans. The … approaches. First, we use microeconomic balance sheet data from Germany and estimate banks' loan supply response to capital …

, suggesting that the use of short-term wholesale funding exposed banks to a sudden dry-up in market liquidity. Moreover … during the crisis, suggesting that adverse shocks to banks hurt the economy. This effect was stronger in areas with more bank …

This paper identifies a precautionary banking liquidity shock via a set of sign, zero and forecast variance … financial intermediation with credit and liquidity frictions. The precautionary liquidity shock is shown to work through two …

This paper identifies a precautionary banking liquidity shock via a set of sign, zero and forecast variance … financial intermediation with credit and liquidity frictions. The precautionary liquidity shock is shown to work through two …

We develop a stylized DSGE model in which banks face capital regulation and their loan portfolios are subject to non … conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area … empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and …