The relationship between firms and banks often suffers from informational opacity that may
result in credit rationing. In theory, providing collateral to the bank can have a mitigating …

In order to survey the mechanisms through which the introduction of Basel II bank capital
requirements is likely to accentuate the procyclical tendencies of banking, this paper brings …

This paper investigates the impact of economic policy uncertainty on financial stability. Using
data for 23 countries over the period of 1996 to 2016, we show that the impact is negative …

ABSTRACT A two-sided" credit-line channel"–relating to drawdowns and repayments–
explains the severe drop and partial subsequent recovery in bank stock prices during the …

This paper empirically examines how capital affects a bank's performance (survival and
market share) and how this effect varies across banking crises, market crises, and normal …

Although the modern theory of financial intermediation portrays liquidity creation as an
essential role of banks, comprehensive measures of bank liquidity creation do not exist. We …

This volume assembles and presents a database on bank regulation in over 150 countries
(included also on CD). It offered the first comprehensive cross-country assessment of the …

The theory of financial intermediation highlights various channels through which capital and
liquidity are interrelated. Using a simultaneous equations framework, we investigate the …

We find that bank liquidity creation (LC) is statistically and economically significantly
positively related to real economic output (GDP). This is robust to using instrumental …

We study the effects of regulatory interventions and capital support (bailouts) on banks'
liquidity creation. We rely on instrumental variables to deal with possible endogeneity …