This paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market … imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself … introduced through a signaling effect of capital buffers on the cost of bank deposits. The macroeconomic effects of various …

This paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market … imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself … introduced through a signaling effect of capital buffers on the cost of bank deposits. The macroeconomic effects of various …

This paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market … imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself … introduced through a signaling effect of capital buffers on the cost of bank deposits. The macroeconomic effects of various …

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 …