decouple across secured and unsecured markets following an adverse shock to credit risk. The scarcity of underlying collateral …

The paper studies the central bank collateral framework and its impact on banks’ liquidity under an adverse stress test … significantly after the initial shock. We find evidence of a threshold in the benefits of expanding the collateral framework and … institutions can rely on the collateral framework channel …

their regulatory ratio by altering their collateral pledging with the European Central Bank. We use the existence of … assets. Using security-level information on collateral pledged with the central bank, we find that banks without a preceding … national liquidity requirement pledge more and less liquid collateral than banks with a preceding national liquidity …

How do housing bubbles affect other economic sectors? We show that in the presence of collateral constraints, a bubble …

unsecured lending and substantial increases in haircuts on posted collateral. This paper seeks to understand the implications of …

projects. In equilibrium, the collateralization-screening mix depends on the value of aggregate collateral. High collateral … important dynamic implications. During credit booms driven by high collateral values (e.g. real estate booms), the economy … accumulates physical capital but depletes information about investment projects. As a result, collateral-driven booms end in deep …

In this paper, we investigate the economy-wide effects of the collateral channel by exploiting: (i) a legal reform in … Sweden in 2004 that reduced collateral values, and (ii) a dataset that covers all incorporated firms in Sweden over the … period 2000-2006. We find that the loss in collateral value reduces both the amount and the maturity of firm debt and leads …

We build a model of collateral choice by banks that allows to recover the opportunity cost of collateral use and the … Central Bank from 2009 to 2011. The model can be used to quantify how changes in haircuts affect the collateral used by banks … rated collateral would have reduced the use of this collateral by 10% but would have increased the average funding cost …