Can banks maintain their advantage as liquidity providers when they are heavily exposed to a financial crisis? The … liquidity insurer is not one of the passive recipient, but of an active seeker, of deposits. We find that banks facing a funding … liquidity demand shocks (as measured by their unused commitments, wholesale funding dependence, and limited liquid assets), as …

This paper explores how international money markets reflected credit and liquidity risks during the global financial … markets, while liquidity risk caused the difference across the currency denominations. They also support the view that a … shortage of US dollar as liquidity distorted the international money markets during the crisis. We find that coordinated …

market liquidity and shorter debt maturity can exacerbate this externality and cause costly firm bankruptcy at higher … fundamental thresholds. Our model provides implications on liquidity-spillover effects, the flight-to-quality phenomenon, and …

We examine how liquidity and asset prices are affected by the following market imperfections: asymmetric information …

monitor markets continuously. We study how limit order markets absorb transient liquidity shocks, which occur when a …