This book studied the impact of a microprudential and macroprudential regulation on the behaviour of financial institutions. Specifically, the empirical studies focused on the impact of changes in regulatory capital requirements on the lending behaviour of Canadian banks. Overall, the results of the empirical studies contribute to the existing and scarce literature on regulatory capital requirements. They provide Canadian regulators and policymakers with guidelines and conditions necessary for the increase of the level of regulatory bank capital requirements, without negatively impacting the level of liquidity required to enable economic recovery from periods of economic uncertainty and downturns.