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 …

explore the macroeconomic implications of various types of countercyclical bank capital regulations. Results suggest that … shocks. Moreover, the bank capital regulatory policy and monetary policy interact, and this interaction is contingent on the …. Compared to bank capital regulatory policy, monetary policy is able to stabilize the economy more efficiently after real shocks …

A bank's decision on loan supply and capital structure determines its immediate bankruptcy risk as well as the future … availability of internal funds. These internal funds in turn determine a bank's future costs of external finance and future …-to-asset ratios, liquidity coverage ratios and regulatory margin calls on the dynamics of loan supply and bank stability. Only …

This study models the impact of new capital regulations proposed under Basel III on bank profitability by constructing … a stylized representative bank's financial statements. We show that the higher cost associated with a one … scheduled commercial banks, one-percentage point increase in capital ratio can be recovered by increasing the bank lending …

in bank actual capital ratios. We find that an add-on of 5% of the output gap changes range is sufficient to mitigate U ….S. bank capital ratios cyclicality. Given an output gap drop of 6% during the 2007 Global Financial Crisis (GFC), when there … was no bank liquidity regulation, our finding suggests that lowering the minimum Basel capital ratio requirement from 8 …

-term resilience. Investigating the effects of such liquidity regulation on bank balance sheets, we find (i) cointegration of liquid …