developed to assess the virtues of what shall be called dividend prudential targets. Welfare-maximizing dividend … by means of less volatile bank retained earnings, (ii) they induce welfare gains associated to a Basel III-type of …The paper investigates the effectiveness of dividend-based macroprudential rules in complementing capital requirements …

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 … existing capital regulation by tackling this issue. Welfare-maximizing DPTs are effective (more than the CCyB) in smoothing the …

developed to assess the virtues of what shall be called dividend prudential targets. Welfare-maximizing dividend … less volatile bank retained earnings, (ii) they induce welfare gains associated to a Basel III-type of capital regulation …The paper investigates the effectiveness of dividend-based macro-prudential rules in complementing capital requirements …