alleviate excess liquidity, and the factors that promote or retard the rate of growth of banks’ assets. Loan default rates in … the region are high, and variations in the rate impact on liquidity and asset growth. However, the size of this effect is … very sensitive to bank age. Some types of improvement in the quality of governance reduce excess liquidity and promote …

the absence of central bank intervention, the incentive of financial intermediaries to free ride on liquidity in good … states may result in excessively low liquidity in bad states. In the prevailing mixed-strategy equilibrium, depositors are … worse off than if banks would coordinate on more liquid investment. It is shown that public provision of liquidity improves …

Liquidity problems lie at the heart of crises on financial markets as demonstrated in this paper by detailed …, provided emergency liquidity to limit the negative effects of such crises. However, the anecdotal and empirical evidence from … the three crises shows that such emergency liquidity assistance implies risks to goods price stability if it is not …