reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …

We examine the relation between capital and liquidity creation. This issue is interesting because of the potential … impact on liquidity creation from tighter capital requirements such as those in Basel III. We perform Granger-causality tests … from 2000 to 2010. We observe a strong expansion in liquidity creation until the financial crisis that was mainly driven by …

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk … increase their risk-taking. This increase in risk-taking however, should be more than outweighed by the benefits of higher …

A growing body of literature indicates that competition increases bank soundness. Applying an industrial organization … indeed increases bank efficiency. Second, building on these results, we examine the relation between the Boone indicator … bank soundness. We find evidence that competition robustly increases bank soundness, via the efficiency channel. …

We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and … liquidity structures and analyses the effects of changes in regulatory capital and liquidity requirements as well as their …

I study rollover risk in the wholesale funding market when intermediaries can hold liquidity ex-ante and are subject to … fire sales ex-post. I demonstrate that precautionary liquidity restores multiple equilibria in a global rollover game. An … intermediate liquidity level supports both the usual run equilibrium and an efficient equilibrium. I provide a uniqueness …

national liquidity requirements to proxy for banks' incentives to exploit this differential treatment of central bank eligible …We analyze the pledging behavior of Euro area banks during the introduction of the liquidity coverage ratio (LCR). The … LCR considers only a subset of central bank eligible assets and thereby offers banks an arbitrage opportunity to improve …

loans before maturity when in need of liquidity. Loan guarantees improve market liquidity and reduce lending standards, with … market liquidity of these loans due to both selection and commitment. Because of this positive pecuniary externality …