The convention in calculating trading costs in corporate bond markets is to assume that dealers provide liquidity to … provide liquidity in corporate bond markets, and thus, average bid-ask spreads underestimate trading costs that customers … demanding liquidity pay. Compared with periods before the 2008 financial crisis, substantial amounts of liquidity provision have …

changes carries important information about liquidity demand in the market. From this distribution of trader position …-changes, we construct a marketwide measure for intraday liquidity demand that does not necessarily depend on aggressive trading …. Using a rich regulatory dataset on S&P 500 E-mini futures and 10-year Treasury futures markets, we show that this liquidity …

As a result of legal restrictions on branch banking, an extensive interbank system developed in the United States … during the 19th century to facilitate interregional payments and flows of liquidity and credit. Vast sums moved through the … interbank system to meet seasonal and other demands, but the system also transmitted shocks during banking panics. The Federal …

We investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a … liquidity regulation. Our identification strategy uses a regression kink design that relies on the variation in a marginal high … credit supply. Liquidity requirements also depress banks' profitability, though some of the regulatory costs are passed on to …

We modify the Diamond and Dybvig (1983) model of banking to jointly study various regulations in the presence of credit … as to provide liquidity and risk-sharing services to the real economy. Our modifications create wedges in the asset and … joint implementation of a capital and a liquidity regulation …

This paper examines the optimal design of and interaction between capital and liquidity regulations in a model … characterized by fire sale externalities. In the model, banks can insure against potential liquidity shocks by hoarding sufficient … precautionary liquid assets. However, it is never optimal to fully insure, so realized liquidity shocks trigger an asset fire sale …