Prior to the financial crisis, prudential regulation in the EU was implemented non-uniformly across countries, as … crisis. Prudential frameworks also explain banks' liquidity buffers even in absence of a specific liquidity regulation, which …

Macroprudential policies are often aimed at the commercial banking sector, while a host of other non-bank financial … institutions, or shadow banks, may not fall under their jurisdiction. We study the effects of tightening commercial bank regulation … macroprudential tightening with monetary easing can limit this leakage mechanism, while still bringing about the desired reduction in …

substitutes. Intermediaries free-ride on the liquidity of other intermediaries, causing excessive liquidation. A macro-prudential … authority internalizes the systemic nature of liquidity and restores constrained efficiency by imposing a macro-prudential …

, akin to the concept of “Growth-at-risk”. We illustrate how the method can inform the calibration of countercyclical … macroprudential policy instruments …