The paper studies the central bank collateral framework and its impact on banks' liquidity under an adverse stress test … scenario. We construct a stress test model that accounts for a granular and multi-faceted representation of the liquidity of … Southern European countries. Results show that illiquidity can trigger insolvency and that liquidity adjustment can last …

facilities corridor affects banks' day-to-day liquidity management and the volatility of the overnight rate. It is shown that the … daily data encompassing the financial crisis that began in 2007. - Standing facilities ; money market ; liquidity management …