reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …

integrated micro-macro approach with two core virtues. First, we measure the probability of bank distress directly at the bank … level. Second, we integrate a microeconomic hazard model for bank distress and a standard macroeconomic model. The advantage … between bank distress and the real economy. We base the analysis on German bank and macro data between 1995 and 2004. Our …

-mandate Taylor rule, focused on output gap, inflation and credit growth, and a Basel III prudential regulation is the best policy mix … macro prudential regulation. …

Using a unique dataset of the Euro area and the U.S. bank lending standards, we find that low (monetary policy) short … securitization activity, weak supervision for bank capital and too low for too long monetary policy rates. Conversely, low long …

, operates mainly through the credit channel, both the bank lending and the non-financial borrower balance-sheet channel. Our … results suggest that the bank-lending channel has been partly mitigated by the ECB nonstandard monetary policy interventions … reducing credit availability problems stemming from deteriorated firm net worth and risk conditions, especially for small firms …

crisis, and of the provision of central bank liquidity during the crisis. Exploiting the euro area institutional setting for … environment of low monetary policy interest rates, bank lending conditions unrelated to borrowers’ risk were softened. During the … helped to soften lending conditions that were tightened because of bank capital and liquidity constraints, especially for …

according to a Basel II or III macro-prudential frameworks and manage their liquidity in the interbank market. The Central Bank … crises and the emergence of deep downturns. This requires the timely intervention of the Central Bank as a liquidity lender … the Liquidity Coverage Ratio spurs financial instability by increasing the pro-cyclicality of banks' liquid reserves, a …

The paper models the interaction between risk taking in the financial sector and central bank policy for the case of … pure illiquidity risk. It is shown that, when bad states are highly unlikely, public provision of liquidity may improve the … allocation, even though it encourages more risk taking (less liquid investment) by private banks. In general, however, there is …