In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the … to meet its liquidity demand. We use quarterly data of bilateral interbank credit exposures between all German banks from … by the individual banks in the European Central Bank's (ECB) weekly repo auctions. The bids measure each bank …

In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the … to meet its liquidity demand. We use quarterly data of bilateral interbank credit exposures between all German banks from … by the individual banks in the European Central Bank's (ECB) weekly repo auctions. The bids measure each bank …

recourse to the LOLR facility (a) to derive banks' willingness-to-pay for liquidity through a one-week repo and (b) to show … results suggest (i) that banks' willingness-to-pay for liquidity indeed reflects refinancing conditions in the interbank …

lending and borrowing rates of banks with and without such access. U.S. liquidity shocks cause a significant decrease in the …We show that emergency liquidity provision by the Federal Reserve transmitted to non-U.S. banking markets. Based on … manually collected holding company structures of international banks, we can identify banks in Germany with access to U …

In times of financial distress, central banks provide unlimited liquidity to avoid fire sales. In response, banks raise … investigate how unlimited liquidity provision affects collateral prices. Also, I match banks' trades with their balance sheet and … Buy premium. To avoid collateral scarcity, central banks increase the set of eligible collateral assets. However, if the …

This paper sheds light on the effect of quantitative easing (QE) on bank lending. Using data on German banks for 2014 …-2016, I show that QE encourages banks to rebalance from securities to loans. For identification, I use bond redemptions as … exogenous variation in banks' need to rebalance their portfolio and hence their exposure to QE. I find that more exposed banks …