liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …

,000 loans over the period 2006:04 to 2008:12. We find robust evidence that the default rate on Islamic loans is less than half … the default rate on conventional loans. The evidence comes from a variety of specifications that contain pertinent … effects. For the same borrower taking both conventional and Islamic loans from the same bank, the hazard rate on Islamic loans …

We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The …. Using the model, we show that liquidity requirements have no long-run effects on default risk but may increase it in the …

, the bank often finances a bidder in the auction, relaxing liquidity constraints. We show that the optimal bid strategy for …

the land price bubble or the fall of the exchange rate. The initial fall in asset values is followed by the ‘knock …-on’ effects of the scramble for liquidity as companies sell land to satisfy their collateral requirements – causing land prices to …

liquidity of their primary market, at the cost of reducing secondary market liquidity or even causing it to freeze. The degree … of transparency is inefficiently low if the social value of secondary market liquidity exceeds its private value. We … analyze various types of public intervention — mandatory transparency standards, provision of liquidity to distressed banks or …

corporate lending rates, we find evidence that institutions with a liquidity deficiency turn to the long-term interbank rate as …We analyze the impact of non-compliance with a requirement similar to the Basel III Liquidity Coverage Ratio and its … non-compliance with a liquidity requirement causes banks to pay and charge higher interest rates as well as to increase …