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Macroeconomic Costs of Higher Bank Capital and Liquidity Requirements

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 per...

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Bibliographic Details
Main Author: Roger, Scott
Other Authors: Vlcek, Jan
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2011
Series:IMF Working Papers
Subjects:
Credit
Interest Rates: Determination, Term Structure, And Effects
Mortgages
Money And Monetary Policy
Depository Institutions
Finance
Money
Financial Institutions
Central Bank Policy Rate
Bank Credit
State Supervision
Micro Finance Institutions
Industries: Financial Services
Monetary Policy, Central Banking, And The Supply Of Money And Credit: General
Monetary Economics
Financial Markets And The Macroeconomy
Financial Services
Banks And Banking
Financial Institutions And Services: Government Policy And Regulation
Financial Regulation And Supervision
Liquidity Requirements
Interest Rates
Banking
Asset Requirements
Loans
Financial Services Law & Regulation
Cycles
Capital Adequacy Requirements
Business Fluctuations
Banks
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary: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
Physical Description:51 pages
ISBN:9781455260386

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