investigate how unlimited liquidity provision affects collateral prices. Also, I match banks' trades with their balance sheet and …In times of financial distress, central banks provide unlimited liquidity to avoid fire sales. In response, banks raise … their demand for collateral assets, and the short-term scarcity of collateral securities leads to higher prices, the Fire …

area. In a structural VAR, we identify a liquidity shock rooted in the interbank market and use its impulse response … Gertler and Kiyotaki (2010). We highlight two main results. First, an identified liquidity shock causes a sizable and … in 2008–09. Second, the liquidity injected in the market by the ECB played an important role in attenuating the …

How does a shock to the liquidity of bank assets affect credit supply, cross-border lending, and real activity at the … firm level? We exploit that, in 2007, the European Central Bank replaced national collateral frameworks by a single list …. This collateral framework shock added loans to non-domestic euro area firms to the pool of eligible assets. Using loan …

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 …

study the intended and unintended consequences of asset purchases in the repo market with Bund collateral. Bunds that are …

the change in eligibility criteria for collateral in central bank refinancing operations. Our results show that market … liquidity tightened after the Lehman collapse but there is no evidence of fire sales in the German banking sector. Instead, we … observe a broad-based flight to liquidity. The European Central Bank's unconventional monetary policy had a strong impact on …

We analyze the impact of financial crises and monetary policy on the supply of wholesale funding liquidity, and also on … on interbank access and volume is stronger than on spreads. Liquidity supply restrictions are exacerbated for cross … price dispersion substantially decreases when the Eurosystem promises unlimited access to liquidity at a fixed price in …