. Using a simultaneous equations framework, we investigate the relationship between bank regulatory capital and bank liquidity … determinants of bank capital buffer has neglected the role of liquidity. On the whole, we find that banks decrease their regulatory …

We contribute to the empirical literature on the impact of shocks to bank capital in the euro area by estimating a … economy, namely a demand shock and a shock to bank capital. The main findings of the paper are as follows: i) Impulse …-response analysis shows that in response to a shock to bank capital, banks boost capital ratios by reducing their relative exposure to …

level of bank capitalization. The existence of a large highly connected hub is beneficial in a capitalized network with a …

Understanding the interaction between bank solvency and funding cost is a crucial pre-requisite for stress-testing. In … this paper we study the sensitivity of bank funding cost to solvency measures while controlling for various other measures … of bank fundamentals. The analysis includes two measures of bank funding cost: (a) average funding cost and (b) interbank …

How do capital and liquidity buffers affect the evolution of bank loans in periods of financial and economic distress … relates macroeconomic aggregates to individual bank balance sheet items and interest rates. We find that banks with high … liquidity buffers also affect bank responses to monetary policy shocks. High bank capitalisation reduces the degree to which …

equity ratio, loan quality and bank size are the main determinants of bank bailout involvement. However, the aided banks … sufficient to restore bank health …

We use administrative and supervisory data at the bank and loan level to investigate the impact of the introduction of … covered bonds on the composition of bank balance sheets and bank risk. Covered bonds, despite being collateralized by … mortgages, lead to a shift in bank lending from mortgages to corporate loans. Young and low-rated firms in particular receive …

facilitate an assessment of the effectiveness of monetary policy. There is clear evidence that the European Central Bank's money …