The crisis of 2007-2009 has shown that financial market turbulence can lead to huge funding liquidity problems for … that banks respond to a negative funding liquidity shock in a number of ways. First, banks reduce lending, especially … banks. This paper provides empirical evidence on banks' responses to wholesale funding shocks, using data of seventeen of …

funding (such as repos), and when it can achieve high leverage thanks to better institutional environment (with more …

The Basel 3 Liquidity Coverage Ratio (LCR) is a micro prudential instrument to strengthen the liquidity position of … regulatory rule can have negative externalities. We simulate the systemic implications of the LCR by a liquidity stress … banks. However if in extreme scenarios the LCR becomes a binding constraint, the interaction of bank behaviour with the …

analysis suggests that preferential treatment in liquidity and capital regulation increases banks' demand for government bonds … beyond their own risk appetite. Liquidity and capital regulation also seem to incentivize banks to substitute other bonds …

This paper analyzes the impact of a liquidity requirement similar to the Basel 3 Liquidity Coverage Ratio (LCR) on … banks' funding costs and corporate lending rates. Using a dataset of 26 Dutch banks from January 2008 to December 2011, I … find that banks which are just above/below their quantitative liquidity requirement do not charge higher interest rates for …

We assess the determinants of banks' liquidity holdings using balance sheet data for nearly 7000 banks from 30 OECD … banks' liquidity risk management. Our main question is whether the presence of liquidity regulation substitutes or … complements banks' incentives to hold liquid assets. Our results reveal that in the absence of liquidity regulation, the …

This paper analyzes the impact of a liquidity requirement similar to the Basel 3 Liquidity Coverage Ratio (LCR) on the … banks from 2005 to 2011, we show that banks which are just above/below their short-term regulatory liquidity requirement pay … liquidity requirement's 30 day horizon. Being close to the minimum liquidity requirement induces banks to increase borrowing …

to a liquidity regulation that is very similar to Basel III's Liquidity Coverage Ratio (LCR). We find that most banks …We investigate 62 Dutch banks' liquidity behaviour between January 2004 and March 2010, when these banks were subject … interaction between capital and liquidity buffers. However, this interaction turns out to be weaker during a crisis. Although not …