. Using a model with imperfect competition and moral hazard, we find that small banks (and hence small borrowers) may profit … from the introduction of an internal ratings based (IRB) approach if this approach is applied uniformly across banks …. However, the banks' right to choose between the standardized and the IRB approaches unambiguously hurts small banks, and …

We introduce banks, modeled as in Diamond and Rajan (JoF 2000 or JPE 2001), into a standard DSGE model and use this … framework to study the role of banks in the transmission of shocks, the effects of monetary policy when banks are exposed to …

This paper studies loan activity in a context where banks must follow Basel Accord-type rules and acquire financing …

The paper discusses the reform of capital regulation of banks in the wake of the financial crisis of 2007/2009. Whereas … a key role in allowing banks to be undercapitalized prior to the crisis, with strong systemic effects for deleveraging …

Basel II framework requires banks to conduct stress tests on their potential future minimum capital requirements and … requirements in which banks' corporate credit risks are modeled with macroeconomic variables. We can thus define scenarios such as … tests based on scenarios envisaged by regulators are not likely to imply binding capital constraints on banks. …