in 2017, there was no commensurate shrinkage of these claims on liquidity. Consequently, the financial sector was left … more sensitive to potential liquidity shocks, with weaker-capitalized banks most exposed. This necessitated Fed liquidity … provision in September 2019 and again in March 2020. Liquidity-risk-exposed banks suffered the most drawdowns and the largest …

banks offer customers. We find that depositors pay a significant cost for the liquidity provided by bank deposits. This cost … liquidity and Treasury liquidity as perfect substitutes. The results have important implications about the role of deposit …

The lack of universal deposit insurance coverage can create liquidity risk during financial crises. This aspect of …-ideal environment to identify this competitive liquidity risk during a crisis. We find that banks that operated nearby a post office …

diversify away local liquidity shortfalls, allowing it to maintain 49 percent higher credit growth from 1929 to 1933 than …

reserves, which are also claims on liquidity. In ordinary times, when these claims are not called on, central bank balance … sheet expansion will typically enhance the net availability of liquidity to the system. However, in times of stress when … these offsetting claims on liquidity are exercised, the demand for liquidity can be significantly more. Furthermore, liquid …