; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Capital Buffers in a Quantitative Model of Banking Industry Dynamics"; ; "kate.s.hansel@mpls.frb.org"; "Corbae, Dean", "D'Erasmo, Pablo"; "Federal Reserve Bank of Minneapolis"; "Industry dynamics with imperfect competition", "Macroprudential policy", "Bank size distribution"; "E44 - Financial Markets and the Macroeconomy", "L11 - Production, Pricing, and Market Structure; Size Distribution of Firms", "G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages"; "We develop a model of banking industry dynamics to study the quantitative impact of regulatory policies on bank risk taking and market structure. Since our model is matched to U.S. data, we propose a market structure where big banks with market power interact with small, competitive fringe banks as well as non-bank lenders. Banks face idiosyncratic funding shocks in addition to aggregate shocks which affect the fraction of performing loans in their portfolio. A nontrivial bank size distribution arises out of endogenous entry and exit, as well as banks' buffer stock of capital. We show the model predictions are consistent with untargeted business cycle properties, the bank lending channel, and empirical studies of the role of concentration on financial stability. We find that regulatory policies can have an important impact on banking market structure, which, along with selection effects, can generate changes in allocative efficiency and stability."^^; "2021-05-26"; "2021-05-26T15:26:31.645585403+00:00"^^; "https://doi.org/10.21034/wp.779"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "2023-03-01T16:36:05.741816086+00:00"^^; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "170", "152"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "779"; "Macroprudential policy", "Industry dynamics with imperfect competition", "Bank size distribution"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _Econometrica_ (Vol. 89, Iss. 6, November 2021, pp. 2975-3023), https://doi.org/10.3982/ECTA16930."^^; ; "Publication" . ; .