bank lending is surprisingly underexamined, given the central importance ascribed to this channel of contagion by … quarterly to the Bank of England. I find that the shock to foreign funding caused a substantial pullback in domestic lending …

risk. In particular, we are interested in payments behaviour towards a bank that is, for operational reasons, unable to … could impact the entire payment system because the affected bank may absorb liquidity from the system. We first build a game …-theoretic model in which a bank's decision to make payments depends both on whether another bank experiences operational problems, and …

correspondent bank. Settling payments directly on the system imposes liquidity costs which depend on the maximum liquidity overdraft … recoup liquidity costs and to extract a profit. We specify a protocol whereby one bank in each period can revisit its choice … chosen by a central bank is found to affect the tiering process and the network structures it produces. A calibration …

We test whether quantitative easing (QE) provided a boost to bank lending in the United Kingdom, in addition to the … the Bank, we use two alternative approaches to identify the effects of variation in deposits on individual banks' balance … traditional bank lending channel (BLC) in the spirit of the model due to Kashyap and Stein. We show in a simple BLC framework that …

Traditionally, regulation of banks has focused on the riskentailed in bank loans. Loans are typically nontradedassets …. In recent years, another component of bank assetshas become increasingly important: assets actively tradedin the … financial markets.1 These assets form the “tradingbook” of a bank, in contrast to the “banking book,” whichincludes the …