' provision of liquidity insurance in the form of credit lines, their significance in managing corporate liquidity, and the …

Can banks maintain their advantage as liquidity providers when they are heavily exposed to a financial crisis? The … liquidity insurer is not one of the passive recipient, but of an active seeker, of deposits. We find that banks facing a funding … liquidity demand shocks (as measured by their unused commitments, wholesale funding dependence, and limited liquid assets), as …

-and-repurchase (repo) contracts. Exemption from an automatic stay in bankruptcy enables financial intermediaries to raise greater liquidity … and induces entry of intermediaries with higher leverage during normal times. This liquidity creation occurs, however, at …

We investigate the transmission of central bank liquidity to bank deposits and loan spreads in Europe over the period … bank liquidity does not translate into lower loan spreads for high-risk banks for maturities beyond one year, even as it …

This paper uses a unique dataset to study how firms managed liquidity during the financial crisis. Our analysis … provides new insights on the interactions between internal liquidity, external funds, and real corporate decisions, such as … the outcome of subsequent renegotiations. We show how companies substitute between credit lines and internal liquidity …

drying up of liquidity. Financial firms raise short-term debt in order to finance asset purchases. When asset fundamentals … worsen, debt induces firms to risk-shift; this limits their funding liquidity and their ability to roll over debt. Firms may … de-lever by selling assets to better-capitalized firms. Thus the market liquidity of assets depends on the severity of …

Ensuring that a firm has sufficient liquidity to finance valuable projects that occur in the future is at the heart of … substantial literature on the ways in which firms manage liquidity has developed only recently. We argue that many of the key … issues in liquidity management can be understood through the lens of a framework in which firms face financial constraints …