This paper presents a small open economy model to analyze the role of central bank liquidity management in implementing … that the central bank uses to manage liquidity in the economy, which creates a role for the central bank balance sheet in … list of eligible collaterals accepted at the liquidity facilities operated by the central bank. These policies have been …

framework in which fractional reserve banks emerge in equilibrium, where bank assets are funded with liabilities made demandable … in government money, where the terms of bank deposit contracts are affected by the liquidity insurance available in … financial markets, where banks are subject to runs, and where a central bank has a meaningful role to play, both in terms of …

The design of lender-of-last-resort interventions can exacerbate the bank-sovereign nexus. During sovereign crises …, central bank provision of long-term liquidity incentivizes banks to purchase high yield eligible collateral securities … matching the maturity of the central bank loans. Using unique security level data, we find that the European Central Bank's 3 …

Evidence on the effects of negative interest rates on bank lending is inconclusive so far. By applying a difference … the introduction of a negative deposit facility rate by the European Central Bank led to an increased credit supply by …

bank risk taking, and its interaction with a regulator's optimization problem. The regulator uses its macroprudential tool … changes to partly "pass through" to bank soundness by not neutralizing the risk-taking channel of monetary policy. Thus …

Under the Single Supervisory Mechanism (SSM) introduced in 2014, the European Central Bank directly supervises …