Before the era of large central bank balance sheets, banks relied on incoming payments to fund outgoing payments in … order to conserve scarce liquidity. Even in the era of large central bank balance sheets, rather than funding payments with … balances. Our findings are timely, given the ongoing shrinking of central bank balance sheets around the world in response to …

Three possible explanations for the emergence of the Canadian central bank in 1935 are examined: that it reflected the …

The paper uses bank- and instrument-level data on asset holdings and liabilities to identify and estimate a general … equilibrium model of trade in financial instruments. Bilateral ties are formed as each bank selects the size and the … lead to less amplification of partial equilibrium shocks, (ii) the influence of a bank's equity is independent of the size …

Bank balance sheet lending is commonly viewed as the predominant form of lending. We document and study two margins of … document the limits of the shadow bank substitution margin: shadow banks substitute for traditional--deposit-taking--banks in … quantitative consequences of several policies on lending volume and pricing, bank stability, and the distribution of consumer …

-of-second-to-last-resort". Using daily supervisory bank balance sheet information, we find that U.S. GSIBs modestly increase their dollar liquidity … broker-dealer subsidiaries within the same bank holding company are crucial to this type of "reserve-draining" intermediation …

We quantify the impact of bank market power on monetary policy transmission through banks to borrowers. We estimate a …-through of these costs to borrowers and depositors, while facing capital and reserve regulation. We find that bank market power … explains much of the transmission of monetary policy to borrowers, with an effect comparable to that of bank capital regulation …