SUMMARY: The Board is adopting amendments to Regulation YY to implement certain of the enhanced prudential standards required to be established under section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act for bank holding companies and foreign banking organizations with total consolidated assets of $50 billion or more. The enhanced prudential standards include risk-based a...

Here, the selection of the formula D for the focus can be taken as selecting among several macro-rules: this derivation illustrates one such macro-rule: the inference rule with conclusion ` Θ,D ⇑ · and with n ≥ 0 premises ` Θ,D ⇑ N1, . . . , ` Θ,D ⇑ Nn (where N1, . . . ,Nn are negative formulas). We shall say that this macro-rule is positive. Similarly, there is a corresponding negative macro-r...

This paper investigates the impact of macro-prudential policy (proxied by counter-cyclical capital buffer (CCyB)) on bank credit risk during uncertain times, as banking sector stability is crucial in promoting financial intermediation. Using a unique daily data set consisting 4939 default swaps (CDS) 70 banks from 25 countries over period 2010–2019, we find that CCyB tightening decreases bank-l...

This paper exposes a fundamental tension between the micro-prudential objective of subjecting banks to greater discipline through debt markets and the macro-prudential objective of containing systemic risk. We show that banks are illiquid due to the inability of bankers to credibly pre-commit to asset choices. Bank debt can reduce this illiquidity by disciplining bankers with the threat of prem...