ability of banks to take recourse to central bank credit operations through changes of the collateral framework (e.g. CGFS … economy in which we illustrate the relevant trade-offs, derive optimal central bank collateral policies, and show why in a … financial crisis, in which liquidity shocks become more erratic and the total costs of defaults increase, central banks may want …

decouple across secured and unsecured markets following an adverse shock to credit risk. The scarcity of underlying collateral …

A standard repurchase agreement between two counterparties is considered to examine the endogenous choice of collateral … assets, the feasibility of secured lending, and welfare implications of the central bank’s collateral framework. As an …

market is important to analyze liquidity problems among heterogenous agents within the financial sector. First, because this … allows for a situation where increased liquidity supply by the central bank is only partially passed on to the interbank … undertaken by central banks to alleviate the liquidity shortage on the interbank market. Namely haircuts on eligible assets in …

found to be of second- order relevance on debt issuance decisions. Our results also suggest that central bank liquidity …

We discuss the notion of liquidity and liquidity risk within the financial system. We distinguish between three … different liquidity types, central bank liquidity, funding and market liquidity and their relevant risks. In order to understand … the workings of financial system liquidity, as well as the role of the central bank, we bring together relevant literature …

reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to …