bank monitoring based on banks' requests for information on their existing borrowers and we investigate the effect of bank … exogenous variation in bank monitoring. Our identification strategy is supported by a theoretical model predicting that a … decrease in the tax rate improves bank incentives to monitor borrowers by increasing returns from lending. We find that bank …

We examine liquidity creation per unit of assets by banks subject to the Liquidity Coverage Ratio (LCR) using the … liquidity measures Liquidity Mismatch Index (LMI) (Bai et al., 2018) and BB (Berger and Bouwman, 2009). We identify the LCR …. We find that, since 2013, there has been reduced liquidity creation by LCR banks compared to non-LCR banks, occurring …

Global liquidity flows are largely channeled through banks and nonbank financial institutions. The common drivers of … global liquidity flows include monetary policy in advanced economies and risk conditions. At the same time, the sensitivities … of liquidity flows to changes in these drivers differ across institutions and have been evolving over time …

-09 financial crisis is often attributed to corporate bond dealers shedding off their inventory, right when liquidity was scarce …, including proprietary trading desks in investment banks, provided liquidity in response to the large selling by clients …. Corporate bond inventory of dealers rose sharply as a result. Although providing liquidity, limits to arbitrage, possibly in the …

's prediction that small firms may be unable to access liquidity when large shocks arrive using data on drawdowns in the COVID … recession. Consistent with the theory, the increase in bank credit in 2020:Q1 and 2020:Q2 came almost entirely from drawdowns by … large firms on pre-committed lines of credit. Differences in demand for liquidity cannot fully explain the differences in …

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 …

lendingchannel effects on emerging markets of shocks to head-office balance sheets. -- Bank ; global ; liquidity ; transmission … examine adverse liquidity shocks on main developedcountry banking systems and their relationships to emerging markets across … contraction in loan supply by domestic banks, resulting from the funding shock to their balance sheets induced by the decline in …

distributional liquidity-shock crisis that causes a large disparity in the liquidity held by different banks, a central bank should … funds and the optimal policy of a central bank in response to liquidity shocks. We show that, when confronted with a … erodes financial stability by increasing the probability of bank runs. -- Bank liquidity ; interbank markets ; central bank …

We study liquidity and systemic risk in high-value payment systems. Flows in high-value systems are characterized by … comparative statics analyses on changes to the environment. We find that banks attempting to conserve liquidity cause an increase … in the demand for intraday credit and, ultimately, a disruption of payments. Additionally, we find that when a bank is …