higher uncertainty of the income stream increases the precautionary savings motive of households. They have a desire to save … more when the variance of their expected income stream is higher. We show that in the model the combination of income risk … and a precautionary savings motive will lead to procyclical capital out ows at business cycle frequency and a higher long …

studies conducted in 11 countries to explore liquidity risk transmission. Among the main results is, first, that explanatory … power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk … management across global banks can be important for liquidity risk transmission into lending. Fourth, there is substantial …