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Macroeconomic Costs of Higher Bank Capital and Liquidity Requirements, Scott Roger, Jan Vlcek

This paper uses a DSGE model with banks and financial frictions in credit markets to assess the medium-term macroeconomic costs of increasing capital and liquidity requirements. The analysis indicates that the macroeconomic costs of such measures are sensitive to the length of the implementation period as well as to the adjustment strategy used by banks, and the scope for monetary policy to respond to the regulatory changes
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Modeling Macro-Financial Linkages; A. Incorporating a Banking Sector into the Macroeconomic Model; 1. A Representative Bank Balance Sheet; B. Real-Financial Linkages and the Transmission Mechanism An unexpected technology shock; 1. A Technology Shock; III. Macroeconomic Costs of Increasing Capital and Liquidity Requirements; A. Regulatory Changes and Assumptions; B. Potential Bank Responses to an Increase in Capital Requirements; C. Results; 2. The Euro Area-Effects of Tighter Capital Requirements
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (75 p.)
Specific Material Designation
Form Of Item

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