This paper analyses the potential roles of bank asset fire sales and recourse to central bank credit to ensure banks …' funding liquidity and solvency. Both asset liquidity and central bank haircuts are modelled as power functions within the unit … interval. Funding stability is captured as strategic bank run game in pure strategies between depositors. Asset liquidity, the …

consequences of the liquidity stress to the solvency ratio; (ii) quantify the liquidity deficit that a central bank should …

conditions, a panic-based depositor-run at one bank may trigger a panic-based depositor-run at another bank. We find that … withdrawals at one bank trigger withdrawals at another bank by increasing players' beliefs that other depositors in their own bank …' beliefs, and are thus contagious, only when depositors know that there are economic linkages between their bank and the …

We offer a theory of financial contagion based on the information choice of investors after observing a financial … evidence about contagious currency crises and bank runs after wake-up calls and provide some guidance for future empirical work …

investigate a specific type of externality that originates from those borrowers that obtain liquidity from more than one bank. In … this case, contagion may occur if a bank hit by a liquidity shock calls in some loans and borrowers then pay them back by …