to Basel III macro-prudential frameworks and manage their liquidity in the interbank market. The Central Bank performs … type and management strategy of the bank, leading to the ''one-size-fits-all'' problem. Finally, we found that additional …

the retail deposit supply owing to, for example, a decrease in bank reserves or in money demand, banks try to substitute … monetary policy transmission through the bank lending channel by limiting the funding substitution of large banks. …

that liquidity requirements could bolster monetary policy transmission through the bank lending channel …

We develop a theory of bank liquidity (cash reserve) requirements. Because cash is both observable and riskless …, greater cash holdings improve bank incentives to manage risk in the remaining, non-cash portfolio of risky assets. In a model … with a single bank, cash is held voluntarily to stem depositors' incentives to withdraw funds early in response to adverse …

sector and other private agents. We introduce endogenous default probabilities for both firms and banks, and allow for bank …

We present a model in which flat (cycle-independent) capital requirements are undesirable because of shocks to bank … capital. There is a rationale for countercyclical capital requirements that impose lower capital demands when aggregate bank … against aggregate shocks (but not bank-specific ones), they create incentives to invest in correlated activities. As a result …