Banks in The Global Integrated Monetary and Fiscal Model

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region DSGE modeldeveloped by the Economic Modeling Division of the IMF for policy and scenario analysis.This paper compares two versions of GIMF, GIMF with a conventional financial accelerator,where bank balance sheets do not play a prominent role, and GIMF with both a financialaccelerator and a fully specified banking sector that can make lending losses, and that isregulated according to Basel-III. We illustrate the comparative macroeconomic properties ofboth models by presenting their responses to a wide range of fiscal, demand, supply andfinancial shocks.