This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank … risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans. We then …

The authors use simulations within the BoC-GEM-FIN, the Bank of Canada's version of the Global Economy Model with … changing bank regulations on the Canadian economy. Specifically, they compute short- and long-run impacts on key macroeconomic … that, while long-run effects on bank loans, lending spreads, investment, and output are modest, the short-run effects are …