toxic assets obstructed the pipes. Banks were forced to squeeze liquidity in a �lemons market� or to ask for liquidity ï … and liquidity risk and then evaluates the decomposition. The main finding is that credit risk increased before the key … events of the crisis, while liquidity risk was mainly responsible for the subsequent increases in the Euribor spread and then …

This paper introduces a coincident indicator of systemic liquidity risk in the Italian financial markets. In order to … take account of the systemic dimension of liquidity stress, standard portfolio theory is used. Three sub-indices, that … reflect liquidity stress in specific market segments, are aggregated in the systemic liquidity risk indicator in the same way …

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 … readily observable variable correlated with systemic liquidity risk (e.g. the LIBOR-OIS spread) is above a trigger threshold …

This paper tests the hypothesis of liquidity hoarding in the Italian banking system during the 2007-2011 global …¿½ interventions are ineffective because banks hoard the liquidity injected rather than channelling it on to other banks and the real … the crisis, and, contrary to widespread conjecture, the liquidity injected by the Eurosystem was intermediated among banks …