[...]The most obvious possible, and undesirable,impact on bank behaviour of risk-weighted capital requirementsis that …

committee at the Bank for International Settlementsand the European Commission have been working on new capital guidelinesand …

Traditional monetary theory has largely ignored the role ofbank equity. Bank-centered accounts of how monetarypolicy … deposits and, in the case of the bank lendingchannel, bank loans. As Friedman (1991) observed,“Traditionally, most economists … Research on this andother episodes has found that low bank capital is associatedwith sluggish lending. …

the loss given default on bank loans and corporate bonds, and seeks to empirically explain this critical relationship.(...) …

to promote bank soundness and sustained lending over the cycle. First, some evidence on bank dividends and earnings in … generates bank equity and credit supply volatility. Then, a DSGE model with key financial frictions and a banking sector is … by means of less volatile bank retained earnings, (ii) they induce welfare gains associated to a Basel III-type of …