Financial entities have been subject to risk-based capital requirements for many years. The
experiences of the recent financial crisis led to heightened criticism that these rules are pro …

Abstract Motivated by the Great Recession in 2008, countercyclical capital regimes are now
being considered by financial regulators. Here we offer both a specific design of a …

After the great turmoil of the latest financial crisis, the criticism of the regulatory frameworks
became increasingly stronger. The rules that banks needed to comply with are presumed to …

The financial crisis of 2008 has brought banking, financial markets, and financial regulation
back to center stage. For decades, Americans could assume that recessions, even …

A tree's risk of catching fire is usually small, except when the forest is ablaze. It is hardly
surprising that the international scope of the recent financial crisis has renewed efforts at …

Banking is said to be inherently procyclical; during good times banks loosen their credit
standards, fuelling the boom. During recessions banks become reluctant to grant loans …

This paper evaluates the ability of some macro variables, namely GDP growth, credit growth,
credit to GDP ratio and property prices in guiding the accumulation of a capital buffer above …

Countercyclical capital regulation can reduce the procyclicality of the banking system and
dampen aggregate economic fluctuations. I describe two new capital buffers introduced in …

The stress tests were a major innovation growing out of the Global Financial Crisis (GFC).
Their objective is to assure that banks have enough capital to allow them to continue to …

This paper examines the extent to which the Basel III bank capital regulation attenuates
fluctuations in housing and credit markets and fosters financial and macroeconomic stability …