In the presence of macroeconomic shocks severe enough to threaten the liquidity or solvency of the banking system, the …

The proposed revision of the Swiss Banking Act introduces a public liquidity backstop (PLB) for distressed systemically … reductions of at least USD 2.9 billion in 2022. The risk for Switzerland of hosting SIBs warrants additional precautionary …

We develop a model where banks invest in reserves and loans, and face aggregate liquidity shocks. Banks with liquidity … financial stability. The structure of liquidity shocks affects the severity and the occurrence of crises, as well as the amount …

This paper studies banks' liquidity provision in the Lagos and Wright model of monetary exchanges. With aggregate … smoothing. The banking panics can be eliminated by the zero-interest policy for the perfect risk sharing, but the first best can …

. Banks with excess liquidity also offer loans to other banks with insufficient liquidity. Thus, each period an interbank loan …

liquidity risk and characterizes them. Both a solvency (leverage) and a liquidity ratio are required to control the … fund managers are more conservative the liquidity requirement has to be strengthened while the solvency one relaxed. Higher … financial intermediary is opaque) and, correspondingly, liquidity requirements should be tightened. The model is applied to …

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 …

November 1930, the Banque de France (BdF) lent selectively rather than broadly, providing substantially more liquidity to …