This paper investigates the costs and benefi ts of liquidity regulation. We find that liquidity tools are bene ficial … but cannot completely remove the need for Lender of Last Resort (LOLR) interventions by the central bank. Full compliance … with current Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) rules would have reduced banks' reliance on …

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 …

estimated while controlling for the macroeconomic environment. An increase in bank' balance sheet risk is shown to increase the …

The paper studies the central bank collateral framework and its impact on banks’ liquidity under an adverse stress test … scenario. We construct a stress test model that accounts for a granular and multi-faceted representation of the liquidity of … four funding channels: unsecured loans, asset sales, private repurchase agreements, or Central Bank lending. We test three …

parent bank. We fi nd that the rise in counterparty risk substantially decreased the probability of obtaining funds from …

experiment to examine the effect of government guarantees on bank risk taking, using a large data set of matched bank …

bank and auction rates in its open market operations in times of financial market stress. In a theoretical model, it is … found that marginal rates at central bank auctions may increase if the share of troubled banks becomes too high relative to … market operations needed to absorb large stress levels in interbank money markets and hence contain central bank auction …

the heart of a new bank liquidity channel. This channel complements the traditional bank lending channel, which focuses on …We study how the consequences of violations of covenants associated with bank lines of credit to firms vary with the …

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 …

collapse then triggers a fire-sale that renders traditional banks vulnerable to “liquidity runs”. The prospect of liquidity … Pigouvian tax on shadow bank profits …