This paper assesses the merits of countercyclical bank balance sheet regulation for the stabilization of financial and …, though banks do not internalize this impact. Regulation, in the form of a constraint on bank leverage, can mitigate the … bank leverage regulation can have desirable stabilization properties, particularly when financial shocks are an important …

regulation limits the banks’ ratio of FX derivatives positions to capital. By using cross-bank variation in the tightness of the … regulation, I show that the regulation causes a reduction in the supply of FX derivatives. Controlling for hedging demand, I find …-standard-deviation increase in a firm’s exposure to the regulation shock transmitted by banks, exports fall by 17.1% for high-hedge firms and rise …

) regulations designed to reduce risk-taking by financial intermediaries. By using crossbank variation in the regulation's tightness …

regulation did not take the "big picture" of the system suffciently into account and, subsequently, financial supervision mainly … "missed the forest for the trees". As a result, the need for macroprudential aspects of regulation emerged, which has recently … macroprudential regulation in creating stable, yet effcient financial systems. At the same time, I emphasize the importance of …

institutions, or shadow banks, may not fall under their jurisdiction. We study the effects of tightening commercial bank regulation …

How to conduct macro-prudential regulation? How to coordinate monetary policy and macro-prudential policy? To address …