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 … by means of less volatile bank retained earnings, (ii) they induce welfare gains associated to a Basel III-type of …

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 …

The 2008 financial crisis exposed a longstanding problem in financial regulation: traditional regulatory strategies … tend to be procyclical. That is, regulatory tools—most notably, bank capital requirements—incentivize excessive credit … regulation was a key driver of the housing bubble in the mid-2000s and the massive credit crunch that followed. To combat this …