means that it will potentially respond more quickly when faced with constrained banks. Three, our results support …

banks had a large impact on exposed bonds’ liquidity. Moreover, based on these ties, we show that bond mutual fund panic … following the 2020 pandemic outbreak affected substantially more mutual funds with the larger exposures to dealer banks’ balance …

in a dynamic GMM panel estimator framework on an exhaustive data set of Czech banks, which mainly includes small banks … large banks. We show that capital negatively Granger-causes liquidity creation in this industry, where majority of banks are … that Basel III can reduce liquidity creation, but also that greater liquidity creation can reduce banks' solvency. Thus, we …

considerable heterogeneity across banks and over time. The model illustrates that banks' reactions depend on initial balance sheet … conditions and reconciles evidence on short-term reductions in loan supply with findings suggesting that better capitalized banks …

regulated commercial banks and unregulated shadow banks. We derive three main results: First, the relative size of the shadow … capacity of secondary markets for shadow banks' assets, shadow banking is stable. In turn, if the sector grows too large, it …. Second, if regulated commercial banks themselves operate shadow banks, a larger shadow banking sector is sustainable. However …

and become toxic. We study the effects of the LRR on lending strategies and its implications for banks' stability. We show … that the LRR might induce banks with low-risk lending strategies to diversify their portfolios into high-risk loans until …, the aggregate capital costs of banks do not increase. However, because the diversification makes banks' portfolios more …

conduct of unsupported banks after the program stopped in the fourth quarter of 2009. The risk premium required by depositors … was lower, and loan rates were higher for banks with higher bailout expectations. The interest margins of unsupported … banks increased in the immediate aftermath of the TARP disbursement but not after 2010. These effects are economically very …

to rollover risk. A bank’s optimal borrowing trades off the benefit from investing additional funds into profitable assets …

-financial environment. In ”normal” states where banks do not face problems to retain enough profits to satisfy higher capital requirements … in capital requirements. In ”bad” states where banks are not able to come up with sufficient equity to satisfy capital …