We present a simple neoclassical model to explore how an aggregate bank-capital requirement can be used as a … macroeconomic policy tool and how this additional tool interacts with monetary policy. Aggregate bank-capital requirements should be … banker. Second, setting aggregate bank-capital requirements is separated from monetary policy. -- central banks ; banking …

We integrate banks and the coexistence of bank and bond financing into an otherwise standard New Keynesian framework … moderate bank credit cycles, and to induce a more efficient allocation of resources across sectors. Moreover, we investigate … that the central bank should focus exclusively on price stability and the macroprudential policy-maker should react …

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

We show that the regulation of bank lending practices is necessary for the optimal provision of private liquidity. In … sector's assets (e.g., by limiting competition in bank lending) will mitigate the commitment problem. If the value of the … bank charter is made sufficiently large, then it is possible to implement an efficient allocation. Thus, the creation of a …

Bank liquidity shortages during the global financial crisis of 2007-2009 led to the introduction of liquidity … impact of liquidity regulation on bank lending. As a setting, we use the Netherlands, where a Liquidity Balance Rule (LBR …

Anticipating a bailout in the event of a crisis distorts a bank's incentives in multiple dimensions. Bailout payments …