term deposits qualify for the LCR. These results suggest that liquidity regulation affects bank demand in monetary policy …We estimate the effects of the liquidity coverage ratio (LCR), a liquidity requirement for banks, on the tenders that … banks submit in Term Deposit Facility operations, a Federal Reserve tool created to manage the quantity of bank reserves. We …

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 …

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 …

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 document several effects of the Liquidity Coverage Ratio (LCR) rule on dealers' financing and intermediation of …

Maintaining sufficient liquidity in the financial system is vital for financial stability. However, since returns on … believe they can rely on other institutions for liquidity support. We examine whether state banks in the early 1900s took …