This paper studies the impact of higher bank capital requirements on corporate lending spreads. We conduct an empirical … analysis using granular bank- and loan-level data for Switzerland. Overall, we find a positive relationship between capital …

lending behavior and risk sensitivity of a risk-neutral bank. CDS contracts may be used to hedge a bank's credit risk exposure … at a certain (potentially distorted) price. Regulation is found to induce the risk-neutral bank to behave in a more risk … credit risk. Under the substitution approach in Basel II (and III) a risk-neutral bank will over-, fully or under-hedge its …

endogenously varies while the regulations are exogenously imposed. I propose a banking model to investigate how the changes in bank … light on how bank equity and Basel III regulations affect credit and money creation …

Political influence on bank credit allocation is often viewed as being necessary to address social problems like income … inequality. We hypothesize that such influence affects bank governance and elicits bank capital responses. Our hypothesis yields … implications for the interaction between politics, household consumption and bank governance and risk through a specific channel …

lending behavior and risk sensitivity of a risk-neutral bank. CDS contracts may be used to hedge a bank’s credit risk exposure … at a certain (potentially distorted) price. Regulation is found to induce the risk-neutral bank to behave in a more risk … credit risk. Under the substitution approach in Basel II (and III) a risk-neutral bank will over-, fully or under-hedge its …

, we show that the economic impact of changes in bank capital requirements depends on the state of the macro …, the impact on bank loan supply works through a ”pricing channel” which is small: around 0.1% less loans for a 1pp increase …

We analyze the relationship between bank size and risk-taking under the New Basel Capital Accord. Using a model with …