00000nam 2200000zi 4500 9.868808 CaOODSP 20221107162703 m o d f cr ||||||||||| 190225s20192019onc #o f|0| 0 eng d CaOODSP eng rda CaOODSP eng fre n-cn--- FB3-5/2019-8E-PDF Schroth, Josef, author. Macroprudential policy with capital buffers / by Josef Schroth. Ottawa : Bank of Canada, February 2019. ©2019 1 online resource (iii, 45 pages) : figures. text txt rdacontent computer c rdamedia online resource cr rdacarrier Bank of Canada staff working paper, 1701-9397 ; 2019-8 Includes bibliographic references. "This paper studies optimal bank capital requirements in a model of endogenous bank funding conditions. I find that requirements should be higher during good times such that a macroprudential “buffer” is provided. However, whether banks can use buffers to maintain lending during a financial crisis depends on the capital requirement during the subsequent recovery. The reason is that a high requirement during the recovery lowers bank shareholder value during the crisis and thus creates funding-market pressure to use buffers for deleveraging rather than for maintaining lending. Therefore, buffers are useful if banks are not required to rebuild them quickly"--Abstract. Includes abstract in French. gccst Financial management gccst Economic regulations Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2019-8. (CaOODSP)9.806221 PDF 1.09 MB https://publications.gc.ca/collections/collection_2019/banque-bank-canada/FB3-5-2019-8-eng.pdf