Nicoletti-Altimari, Sergio; Salleo, Carmelo - Banca d'Italia - 2010
diminish the probability of runs, if markets are convinced that banks can secure sufficient liquidity when needed thanks to the …After the crisis, bank regulators are considering mitigating liquidity risk by introducing quantity limits on liquidity … and maturity mismatch. We argue that aggregate liquidity risk can be reduced with little deadweight loss by encouraging …