Macroprudential policy yields important benefits in terms of preventing and mitigating
systemic risk, but it can also have an impact on economic growth, particularly on the left tail …

We examine optimal capital requirements in a quantitative general equilibrium model with
banks exposed to non-diversifiable borrower default risk. Contrary to standard models of …

We offer a tractable dynamic theory where excessive credit creation by the frictional banking
sector may lead to over-investment and then endogenous boom-bust cycles. We formalize …

This paper presents a model in which firms have endogenously-persistent lending
relationships with banks which compete both on interest rates and collateral requirements …

This paper presents a model where both households and firms form lending relationships
with banks. The banks in this model compete on both interest rates and collateral and the …

Based on aggregate data from the lending survey for Poland and using a series of structural
vector autoregressive models, we show that credit market sentiments, bank capital position …

We examine optimal capital requirements in a quantitative general equilibrium model with
banks exposed to non-diversifiable borrower default risk. Contrary to standard models of …

This article analyzes the effect of endogenous valuations-based capital requirements on risk-
shifting in a closed economy DSGE Model. It adds to the existing literature by including …