 Well, we try to understand whether bank regulation limits lending to borrowers when it matters the most. We know that bank lending tends to go up and down faster than the real economy. That is, bank lending is pro-cyclical. This feature is critical when the economy is hit by a lot of shock, such as the COVID-19 pandemic. So we focus on the effect of model-based bank capital regulation. This is an important regulation that allows many banks to use their own models to calculate how much capital they need to put aside for the risk they have on their books. We show that the internal model indeed ensures the safety of the banks, simply because these models are much better in incorporating rising risks in the economy. At the same time, these models induce the banks that are using them to reduce lending to corporations, and they do these more than banks that are not using this model. While this is definitely true in aggregate, when we look more in details, what we find is that actually there are ways to calibrate this model in order to incorporate the probability of very negative scenario, and when these models are calibrated in such a way, banks are much more resilient in face of a shock and then can continue lending. So our results basically give support to the idea that regulation has an effect on credit and therefore has an effect on economic cycle. So it is very important that policymakers in general are very much aware of that. And of course, there are policy actions that can be taken. In particular, it makes sense to have a minimum level of capital requirements, so a level that banks cannot go lower than that, or having capital that somehow changed during the cycle in order to smooth any kind of negative effect.