explains the link between the liquidity premium and spreads. We present a theory of endogenous bank fragility arising from a … coordination friction among bank creditors. The theory's implications reduce to a single constraint on banks, which is embedded in … that reduce bank net worth exacerbate the coordination friction. In response, banks lend less and demand more liquid assets …

broadly echoes policy makers' concerns about bank disintermediation and financial stability risks, it also provides conditions …

We investigate the impact of macroprudential capital requirements on bank lending behaviour across economic sectors … to central bank funding. These results have important policy implications as they provide evidence on the impact of …

the introduction of negative deposit rates by the European Central Bank in June 2014 and a novel securities register for …

We contribute to the empirical literature on the impact of shocks to bank capital in the euro area by estimating a … economy, namely a demand shock and a shock to bank capital. The main findings of the paper are as follows: i) Impulse …-response analysis shows that in response to a shock to bank capital, banks boost capital ratios by reducing their relative exposure to …

How do capital and liquidity buffers affect the evolution of bank loans in periods of financial and economic distress … relates macroeconomic aggregates to individual bank balance sheet items and interest rates. We find that banks with high … liquidity buffers also affect bank responses to monetary policy shocks. High bank capitalisation reduces the degree to which …

We empirically analyse the relationship between longer term central bank liquidity support and banks' balance sheet …