In Germany, the Regulation on the Liquidity of Institutions (formerly Principle II) requiresbanks to have a liquidity ratio which is at least equal to one. This ratio is calculated by dividingregulatorily specified liquid assets that are available within one month by short-term...

Using a European panel data set, this paper presents evidence that fund providers' investment preferences matter for venture capital investment characteristics. For example, pension funds more often prefer investments in firms at an early development stage than non-financial corporations and banks.