demand schedule of the representative bank is relatively flat around the middle of the interest rate corridor set by the … standing facilities. This suggests that liquidity effects on the overnight inter-bank rate should be very muted on this day …. Our calibration exercise suggests that the probability of an individual bank's daily overdraft in the euro area is very …

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …

A growing body of literature indicates that competition increases bank soundness. Applying an industrial organization … indeed increases bank efficiency. Second, building on these results, we examine the relation between the Boone indicator … bank soundness. We find evidence that competition robustly increases bank soundness, via the efficiency channel …

approach is able to measure competition of bank market segments, such as the loan market, whereas many well-known measures of … ignores differences in bank product quality and design, as well as the attractiveness of innovations. We measure competition …

Markets Programme (SMP). Using detailed security holdings data at the bank level, we show that banks exposed to this …

and measures competition vis-à-vis other market participants. We apply this extended Boone indicator to individual bank …