Financial crises are associated with reduced volumes and extreme levels of rates for term inter-bank transactions, such … leveraged banks’ precautionary demand for liquidity. When adverse asset shocks materialize, a bank’s ability to roll over debt … is impaired because of agency problems associated with high leverage. In turn, a bank’s propensity to hoard liquidity is …

We identify frictions in the market for liquidity as well as bank-specific and market-wide factors that affect the … prices that banks pay for liquidity, captured here by borrowing rates in repos with the central bank and benchmarked by the … overnight index swap. We have price data at the individual bank level and, unique to this paper, data on individual banks …

account, a U-shaped relationship between competition and the risk of bank failure generally obtains. …

. Using a bidder level dataset of the European Central Bank’s main repo auctions, however, we find evidence that the economic …

also contributed, through the deeply subsidised bank funding it provided through the 3-year LTROs, half of a mechanism to …

We analyse the implications for the pricing of bank loans of the reform of capital regulation known as Basel II. We …-sensitive standardized approach of Basel II. We also show that only an extremely high social cost of bank failure might justify the proposed …

how central bank preferences (and thereby monetary policy) affect the relation between nominal interest rates, inflation … expectations, and real interest rates. The benchmark parameters, including the Federal Reserve Bank’s loss function parameters, are …

banks? Looking at the European Central Bank, the paper shows that politicians, on average, favor significantly lower …