BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//Memento EPFL//
BEGIN:VEVENT
SUMMARY:Capital Requirements in a Quantitative Model  of Banking Industry 
 Dynamics
DTSTART:20190524T103000
DTEND:20190524T120000
DTSTAMP:20260513T020039Z
UID:b6268aea5e6f9ab971f8f662dbeac8d5038a3ff66a9ef050918002c0
CATEGORIES:Conferences - Seminars
DESCRIPTION:Dean CORBAE\, University of Wisconsin–Madison\nWe develop a 
 model of banking industry dynamics to study the quantitative impact of cap
 ital requirements on equilibrium bank risk taking\, commercial bank failur
 e\, interest rates on loans\, and market structure. We propose a market st
 ructure where big banks with market power interact with small\, competitiv
 e fringe banks. Banks face idiosyncratic funding shocks in addition to agg
 regate shocks to the fraction of performing loans in their portfolio. A no
 ntrivial bank size distribution arises out of endogenous entry and exit\, 
 as well as banks' buffer stock of net worth. We show the model predictions
  are consistent with untargeted business cycle properties\, the bank lendi
 ng channel\, and empirical studies of the role of concentration on financi
 al stability. We then conduct a series of counterfactuals (including count
 ercyclical and size contingent (e.g. SIFI) capital requirements). We find 
 that regulatory policies can have an important impact on market structure 
 in the banking industry which\, along with selection effects\, can generat
 e changes in allocative efficiency.\n 
LOCATION:UNIL\, Extranef\, room 126 https://planete.unil.ch/plan/?local=EX
 T-126
STATUS:CONFIRMED
END:VEVENT
END:VCALENDAR