How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …

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 creditors. Changes in the interest rate affect the price and amount of …

observe a broad-based flight to liquidity. The European Central Bank's unconventional monetary policy had a strong impact on … directly preceding and following the Lehman collapse in September 2008. The default of Lehman Brothers was a shock to the … the change in eligibility criteria for collateral in central bank refinancing operations. Our results show that market …

How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …

We analyze the impact of market liquidity on bank lending in the euro area for different segments over the period 2003 … liquidity has an asymmetric effect on bank lending: The negative impact of a reduction in liquidity is more significant than the … restricted first in times of impaired market liquidity. The bank-level data confirm the strong impact of market liquidity on bank …

-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 …A bank's decision on loan supply and capital structure determines its immediate bankruptcy risk as well as the future …

We show that the transmission of the European Central Bank’s (ECB) recent monetary policy tightening differs across …

’s willingness to pay for liquidity since they had variable rate tenders with a “pay-your-bid” price. Controlling for bank … operations. These findings suggest that incentives to diversify bank liquidity risk dominate the benefits of private information …In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the …

In this paper we introduce two measures, the Systemic Liquidity Buffer (SLB) and the Systemic Liquidity Shortfall (SLS …) to assess liquidity in the banking system. The SLB takes an aggregated perspective on liquidity risks in the banking … system. In contrast, the SLS focusses on the problematic banks which suffer a liquidity shortfall. These measures provide an …

assets by secondary market investors. This hampers a troubled bank's recourse to liquidity and increases the incidence of … bank runs, potentially unleashing a wave of investor pessimism that can drive otherwise solvent banks into illiquidity. We … quantify this contagion channel in the context of the Bank of Canada's model of the Canadian banking system and a stress …