The investment fund sector, the largest component of the non-bank financial system, is growing rapidly and the economy …. Funds invest in corporate bonds and may hold liquidity in the form of bank deposits to meet investor redemption requests …. Without regulation, funds hold insufficient deposits and must sell bonds when hit by large redemptions. Bond liquidation is …

paper, by means of a DSGE model including heterogeneous firms and banks, financial frictions and prudential regulation … increases the volatility of lending and output. We further show that relying on microprudential regulation alone would not be … microprudential regulation, leads to a Pareto improvement. …

significance. Our results do not point to a major role of newly introduced bank levies in explaining cross-border banking …

This paper investigates both the magnitude and the drivers of bank window dressing behaviour in euro-denominated repo …

How do near-zero interest rates affect optimal bank capital regulation and risk-taking? I study this question in a …

measures in a regulated banking environment. Based on an estimated DSGE model, we explore the interactions between central bank … asset purchases and bank capital-based financial policies (regulatory, supervisory or macroprudential) through its influence … on bank risk-shifting motives. We find that weakly-capitalised banks display excessive risk-taking which reinforces the …

This paper investigates the costs and benefits of liquidity regulation. We find that liquidity tools are beneficial but … cannot completely remove the need for Lender of Last Resort (LOLR) interventions by the central bank. Full compliance with …