, liquidity management, and synergy improvements that reduce risk. The outcomes of such trade-offs may depend on bank governance … geographic scope tend to provide diversification gains and reduce idiosyncratic and liquidity risks while also increasing BHCs … this type of complexity, leading to a decrease in systemic risk and an increase in liquidity risk among BHCs. While bank …

We examine liquidity creation per unit of assets by banks subject to the Liquidity Coverage Ratio (LCR) using the …. We find that, since 2013, there has been reduced liquidity creation by LCR banks compared to non-LCR banks, occurring …-off between lower liquidity creation and lower run risk from reduced liquidity mismatch of the largest banks. …

We estimate the cost of capital for the banking industry and find that while the cost of capital soared for banks in … the financial crisis, after the passage of the Dodd-Frank Act, the value-weighted cost of capital for banks fell … differentially more than did the cost of capital for nonbanks. The very largest banks drive the decline in expected returns. Over a …

illiquid assets or underprovision of liquidity. We investigate whether imperfect competition (Cournot) improves welfare through … internalizing the externality and find that this is far from guaranteed. In a standard model of liquidity shocks, when liquidity is … sufficiently scarce, Cournot competition leads to even less liquidity than the Walrasian equilibrium. In a standard model of …

disrupting the liquidity or stability of mortgage secondary markets. In the process, the programs have created a new financial … market for pricing and trading mortgage credit risk, which has grown in size and liquidity over time. The CRT programs …

This paper examines market liquidity in the post-crisis era in light of concerns that regulatory changes might have … considering additional drivers of market liquidity. We document a stagnation of dealer balance sheets after the financial crisis … liquidity. …

Global liquidity flows are largely channeled through banks and nonbank financial institutions. The common drivers of …. Microprudential regulation of banks plays a role, influencing leverage and capitalization, changing sensitivities to shocks, and also … driving risk migration from banks to nonbank financial institutions. Risk sensitivities and flightiness of global liquidity …

Not very. We find that weather disasters over the last quarter century had insignificant or small effects on U.S. banks … offsets losses and actually boosts profits at larger banks. Local banks tend to avoid mortgage lending where floods are more …