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Unregulated lending, mortgage regulations and monetary policy

Emenogu, Ugochi; Peterson, Brian - 2022 - Last updated: June 27, 2022

Macroprudential policies are often aimed at the traditional banking sector while nondepository financial institutions or shadow banks have limited or no prudential regulations. This paper studies the macroeconomic impact of household-side macroprudential tightening in the presence of unregulated...

Persistent link: https://www.econbiz.de/10013264902

Estimating the appropriate quantity of settlement balances in a floor system

Bulusu, Narayan; McNeely, Matthew; McRae, Kaetlynd; … - 2023

In April 2022, the Bank of Canada announced that it would continue to use a floor system to implement monetary policy … the deposit rate. In contrast, the Bank's guiding principles of prudence, transparency and neutrality, which govern the … rate close to the Bank's policy interest rate (which is equal to the deposit rate in a floor system). The second is an …

Persistent link: https://www.econbiz.de/10014392970

Liquidity regulation and financial intermediaries

Macchiavelli, Marco; Pettit, Luke - 2018

We document several effects of the Liquidity Coverage Ratio (LCR) rule on dealers' financing and intermediation of securities. For identification, we exploit the fact that the US implementation is more stringent than that in foreign jurisdictions. In line with LCR incentives, US dealers reduce...

Persistent link: https://www.econbiz.de/10012016652

Bank Capital Regulation in a Zero Interest Environment

Döttling, Robin - 2020

How do near-zero interest rates affect optimal bank capital regulation and risk-taking? I study this question in a …

Persistent link: https://www.econbiz.de/10012852883

Dynamic Bank Capital Regulation in the Presence of Shadow Banks

Mishin, Arsenii - 2021

I embed shadow banks in a quantitative general equilibrium model in which limited liability and deposit insurance can lead regulated banks to provide socially inefficient risky loans. Higher capital requirements can eliminate excessive risk at the cost of lower liquidity provision. In general...

Persistent link: https://www.econbiz.de/10013250536

Bank Capital Regulation in a Zero Interest Environment

Döttling, Robin - 2020

How do near-zero interest rates affect optimal bank capital regulation and risk-taking? I study this question in a …

Persistent link: https://www.econbiz.de/10012831074

Analysis of granularity adjustment for regulatory capital

Krali, Mario; Gurov, Andrey - In: Journal of central banking theory and practice 8 (2019) 3, pp. 111-132

The lack of portfolio granularity in terms of exposure has been shown to have important implications for the amount of a financial institution's economic capital. Based on a numerical simulation model, we provide concrete examples of how granularity affects capital levels. We achieve this by...

Persistent link: https://www.econbiz.de/10012101497

Capital requirements, market structure, and heterogeneous banks

Müller, Carola - Leibniz-Institut für Wirtschaftsforschung Halle - 2022

Bank regulators interfere with the efficient allocation of resources for the sake of financial stability. Based on this …

Persistent link: https://www.econbiz.de/10013198370

Equity versus bail-in debt in banking : an agency perspective

Mendicino, Caterina; Nikolov, Kalin; Suárez, Javier - 2017

We examine the optimal size and composition of banks' total loss absorbing capacity (TLAC). Optimal size is driven by the trade-off between providing liquidity services through deposits and minimizing deadweight default costs. Optimal composition (equity vs. bail-in debt) is driven by the...

Persistent link: https://www.econbiz.de/10011978192

New instruments for banking regulation and monetary policy after the crisis

Detzer, Daniel - 2012

the working of the instruments is demonstrated and analyzed. It is shown that in theory both instruments are able to …

Persistent link: https://www.econbiz.de/10009550219