' provision of liquidity insurance in the form of credit lines, their significance in managing corporate liquidity, and the …

Motivated by the regional bank crisis of 2023, we model the impact of interest rates on the liquidity risk of banks … the bank. The liquidity risk of the bank thus increases with interest rates. We provide a formula for the bank's optimal … simultaneously hedge its interest rate risk and liquidity risk exposures. The dilemma disappears only if uninsured deposits do not …

in 2017, there was no commensurate shrinkage of these claims on liquidity. Consequently, the financial sector was left … more sensitive to potential liquidity shocks, with weaker-capitalized banks most exposed. This necessitated Fed liquidity … provision in September 2019 and again in March 2020. Liquidity-risk-exposed banks suffered the most drawdowns and the largest …

The lack of universal deposit insurance coverage can create liquidity risk during financial crises. This aspect of …-ideal environment to identify this competitive liquidity risk during a crisis. We find that banks that operated nearby a post office …

diversify away local liquidity shortfalls, allowing it to maintain 49 percent higher credit growth from 1929 to 1933 than …