under-provisioning, and banks respond by cutting credit to households and firms. This paper shows that the procyclicality of … losses or on short-horizon expected losses, increase procyclicality in the banking system. They could, therefore, contribute … provisions, a working macroprudential mechanism for more than a decade and a full lending cycle. …

This paper compares alternative procedures to mitigate the procyclicality of the new risk-sensitive bank capital … growth. Our discussion concludes that the latter is better in terms of simplicity, transparency, and consistency with banks …

This paper compares alternative procedures to mitigate the procyclicality of the new risk-sensitive bank capital … growth. Our discussion concludes that the latter is better in terms of simplicity, transparency, and consistency with banks …

restricted to commercial banks. The authors did not examine investment banks or microfinance banks in this study. Also, not … banks will likely keep fewer provisions or engage in under-provisioning when they face intense competition, and this can … effect of concentration and competition on income smoothing among CEE banks. …

restricted to commercial banks. The authors did not examine investment banks or microfinance banks in this study. Also, not … banks will likely keep fewer provisions or engage in under-provisioning when they face intense competition, and this can … effect of concentration and competition on income smoothing among CEE banks. …

We find evidence that banks target return on equity (RoE) and make active use of leverage to affect the speed of … adjustment towards RoE targets. That holds for both the pre- and post-2007 periods and especially for banks that tend to operate … cyclical fluctuations as banks take on more leverage to achieve high returns when risk premia are low, while ‘rush for the exit …