We study differences in the price paid for liquidity across banks using price data at the individual bank level. Unique … to gauge the extent to which a bank is short or long liquidity. We find that the price a bank pays for liquidity depends … on the liquidity positions of other banks, as well as its own. There is evidence that liquidity squeezes occasionally …

During the last decades a consensus has emerged that it is impossible to disentangle liquidity shocks from solvency … in banking and the role of the lender of last resort to prevent it. …

reserves (a liquidity crisis) occurs endogenously. We show that discount window lending by the LLR is welfare-improving but … reduces banks’ ex-ante incentive to hold monetary reserves, which increases the probability of a liquidity crisis, and can …

reserves (or a banking panic) occurs endogenously. We show that while a discount window policy introduced by the LLR is welfare … lending rate, liquidity requirements and constructive ambiguity …

regimes, also known as prompt corrective action'; 3. Money market operations by Central Banks; 4. Commercial bank liquidity …