In this project, I focus on the potential impairment of the bank lending channel of monetary policy easing for weakly capitalized banks. I show this in two steps. First, I show through a theoretical model how weakly capitalized banks react differently from strongly capitalized banks and asymmetrically between monetary policy easing and tightening. Second (part still preliminary), I plan to test empirically the predictions from the theoretical model. I plan to do so by building an exogenous measure of the banks' capital constraint in Germany based on macroprudential policy surprises, and then by studying the effect of those surprises on banks' lending and risk taking by using loan-level data.