buffer appears to crowd out bank lending and lead to a migration of liquidity risks to banks that are not subject to … volatility in the liquidity premium. A central bank committed liquidity facility can improve the current quantity …

We integrate banks and the coexistence of bank and bond financing into an otherwise standard New Keynesian framework … moderate bank credit cycles, and to induce a more efficient allocation of resources across sectors. Moreover, we investigate … that the central bank should focus exclusively on price stability and the macroprudential policy-maker should react …

likelihood to issue equity. In contrast to this view, for an international sample of bank Seasoned Equity Offerings (SEOs), we …

and in a financial crisis, the treatment of central bank operations in the regulation is obviously important. To ensure … internalisation of liquidity risks (i.e. pricing of liquidity risk) and to address excessive reliance ex ante on central bank … interaction between the two areas can be substantial, depending on the operational and collateral framework of the central bank …

This paper examines the macroprudential roles of bank capital regulation and monetary policy in a Dynamic Stochastic … channels through which credit risk, commercial bank losses, monetary policy and bank capital requirements affect the real … toolkit. Following credit shocks, countercyclical bank capital regulation is more effective than monetary policy in promoting …

In April 2022, the Bank of Canada announced that it would continue to use a floor system to implement monetary policy … the deposit rate. In contrast, the Bank's guiding principles of prudence, transparency and neutrality, which govern the … rate close to the Bank's policy interest rate (which is equal to the deposit rate in a floor system). The second is an …