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How do real interest rates affect financial fragility? We study this issue in a model in which bank borrowing is subject to rollover risk. A bank’s optimal borrowing trades off the benefit from investing additional funds into profitable assets with the cost of greater risk of a run by bank...
Persistent link: https://www.econbiz.de/10013460206
This paper examines German and foreign bank factors that can explain cross-border central bank liquidity flows between … central bank liquidity from abroad than a German bank with fewer existing central bank claims. However, higher overall … liquidity of a German credit institution corresponds to additional net inflows. Foreign bank factors only matter for central …
Persistent link: https://www.econbiz.de/10013411245
-the-counter markets for liquidity in Germany: the interbank market for credit and for derivatives. We use end-of-quarter data from the …
Persistent link: https://www.econbiz.de/10010405454
Persistent link: https://www.econbiz.de/10000919300
In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the … to meet its liquidity demand. We use quarterly data of bilateral interbank credit exposures between all German banks from …’s willingness to pay for liquidity since they had variable rate tenders with a “pay-your-bid” price. Controlling for bank …
Persistent link: https://www.econbiz.de/10010238510
macroeconomic risk factor. Overall our findings lend support to a theory of banking that involves leverage stacks, i …
Persistent link: https://www.econbiz.de/10011483090
-to-asset ratios, liquidity coverage ratios and regulatory margin calls on the dynamics of loan supply and bank stability. Only … regulatory margin calls or large liquidity coverage ratios achieve bank stability for all risk levels, but for large risks a bank …
Persistent link: https://www.econbiz.de/10011918996
Persistent link: https://www.econbiz.de/10013259623
We study efficiency properties of competitive economies in which banks provide liquidity insurance and interact on …
Persistent link: https://www.econbiz.de/10011903708
We study the role of liquidity management tools (LMTs) in mitigating financial fragility in investment funds during the …
Persistent link: https://www.econbiz.de/10015055847