prices that banks pay for liquidity, captured here by borrowing rates in repos with the central bank and benchmarked by the …We identify frictions in the market for liquidity as well as bank-specific and market-wide factors that affect the … liquidity. We find that the price a bank pays for liquidity depends on the liquidity positions of other banks, as well as its …

We study the liquidity demand of large settlement (first-tier) banks in the UK and its effect on the Sterling Money … Markets before and during the sub-prime crisis of 2007-08. Liquidity holdings of large settlement banks experienced on average … banks to park liquidity at the central bank rather than lend in the market. We show that following this structural break …

non-compliance with a liquidity requirement causes banks to pay and charge higher interest rates as well as to increase …We analyze the impact of non-compliance with a requirement similar to the Basel III Liquidity Coverage Ratio and its … impact on bank intermediation applying Regression Discontinuity Designs. Using a unique dataset on Dutch banks, we show that …

Repo auctions are multiunit auctions regularly used by central banks to inject liquidity into the banking sector. Banks …. Using a bidder level dataset of the European Central Bank’s main repo auctions, however, we find evidence that the economic …

deposit insurance. We analyse a model in which agents choose between depositing their funds with banks and placing them in a …

During the recent financial crisis, central banks have provided liquidity and governments have set up rescue programmes … bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity and monitors too little. A … central bank can alleviate the liquidity problem, but induces moral hazard. Therefore, we introduce an additional authority …

Bailout expectations have led banks to behave imprudently, holding too little capital and relying too much on short … to liquidity assistance as a solution to forbearance. Faced with a bank that chooses capital and liquidity, the … institution providing liquidity assistance can commit to a mixed strategy: never bailing out is too costly and therefore not …

global liquidity creation by key central banks and, second, an ex-ante global saving glut, brought about by the entry of a … England’s liquidity management, regulatory failure of the FSA, an inadequate deposit insurance arrangement and deficient …

banks have provided liquidity and ministries of finance have set up rescue programmes to restore confidence and stability …. Using a model of a systemic bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity … and takes excessive risk compared to the social optimum. A Lender of Last Resort can alleviate the liquidity problem, but …