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 …

different impairment rules and their potential effect on bank income and lending, a migration model simulates the “incurred loss … volatility of bank profits and lending without reducing accounting transparency …

This paper examines bank portfolio management under banking regulation and asymmetric information about borrower types … and screening by banks and imperfect competition in the credit market. A bank tries to maximize expected profits subject … to a portfolio variance constraint. The analysis yields the following results: For a monopoly bank, the incentive …

Financial regulation; regulatory margin call; financial stability; bank lending; business cycle; Basel III Accord … analyze the impact of this regulation on the trade-off between financial stability and efficient bank lending also in … margin call is hampered in the presence of asymmetric information with respect to the quality of bank assets. I argue that …