constructed ‘low minus high’ (LMH) stock turnover portfolio as a liquidity risk factor. The LMH factor produces significant betas …

equity or to borrow short-term, we show how share issue and dividends on the one hand and cash accumulation and bank … between shareholders and creditors regarding the firm's liquidity policy and show that bond covenants that establish an …

bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity and monitors too little. A … central bank can alleviate the liquidity problem, but induces moral hazard. Therefore, we introduce an additional authority …During the recent financial crisis, central banks have provided liquidity and governments have set up rescue programmes …

. Using a model of a systemic bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity … banks have provided liquidity and ministries of finance have set up rescue programmes to restore confidence and stability … and takes excessive risk compared to the social optimum. A Lender of Last Resort can alleviate the liquidity problem, but …

leveraged banks’ precautionary demand for liquidity. When adverse asset shocks materialize, a bank’s ability to roll over debt … is impaired because of agency problems associated with high leverage. In turn, a bank’s propensity to hoard liquidity is …Financial crises are associated with reduced volumes and extreme levels of rates for term inter-bank transactions, such …

channel, we perform an empirical analysis of Russian bank liquidity in 1994 on the basis of bank data. The paper concludes … that the huge excess reserves of Russian banks in 1994 were at least partially due to excess liquidity in the banking … system. This means that banks preferred to hold liquidity rather than to grant loans. The hypothesis that the credit crunch …

This paper investigates whether the new Basel Accord will induce a change in bank lending to emerging markets using a …