The paper investigates the effectiveness of dividend-based macroprudential rules in complementing capital requirements … to promote bank soundness and sustained lending over the cycle. First, some evidence on bank dividends and earnings in … generates bank equity and credit supply volatility. Then, a DSGE model with key financial frictions and a banking sector is …

funds permanently decrease their ownership shares at treated banks during the 2020 dividend restrictions in the Eurozone and …This paper studies the impact of banks’ dividend restrictions on the behavior of their institutional investors. Using … fund ownership and banks’ dividend yield, highlighting again the importance of dividends for European banks’ fund investors …

Dividend payouts affect the relative value of claims within a firm. When firms have contingent claims on each other, as … in the banking sector, dividend payouts can shift the relative value of stakeholders' claims across firms. Through this … channel, one bank's capital policy affects the equity value and risk of default of other banks. In a model where such …

trends. When shocks hit their profits, banks tend to adjust retained earnings to smooth dividends. This generates bank equity … effects of a novel macroprudential policy rule - that I shall call Dividend Prudential Target (DPT) - aimed at complementing …

The paper investigates the effectiveness of dividend-based macro-prudential rules in complementing capital requirements … to promote bank soundness and sustained lending over the cycle. First, some evidence on bank dividends and earnings in … generates bank equity and credit supply volatility. Then, a DSGE model with key financial frictions and a banking sector is …

trends. When shocks hit their pro ts, banks tend to adjust retained earnings to smooth dividends. This generates bank equity … effects of a novel macroprudential policy rule - that I shall call Dividend Prudential Target (DPT) - aimed at complementing …

The paper investigates the effectiveness of dividend-based macroprudential rules in complementing capital requirements … to promote bank soundness and sustained lending over the cycle. First, some evidence on bank dividends and earnings in … generates bank equity and credit supply volatility. Then, a DSGE model with key financial frictions and a banking sector is …

The role that banks play in screening and monitoring their borrowers is well understood. However, these bank activities … question – who monitors the monitor? Financial intermediation theories posit that bank capital structure plays such a role in … incentivizing banks to monitor their borrowers. Both bank debt and bank equity have been proposed in various theories as providing …