Giordana, Gastón Andrés; Schumacher, Ingmar - Central Bank of Luxembourg - 2011
liquidity providers to the EU banking sector. This also explains the different evolution of leverage compared to the US …, makes leverage a less relevant indicator of riskiness for investors. Secondly, it implies that in times of liquidity … shortages, mother companies or groups demand further liquidity from their branch or subsidiary. The downturn in leverage during …