Hui, Cho-Hoi; Genberg, Hans; Chung, Tsz-Kin - Hong Kong Monetary Authority - 2009
Given the deleveraging process in the banking sector, banks were reluctant to lend funds in the interbank market because of uncertainty about their own future need for funds during the financial crisis of 2007 - 2009. Aggregate liquidity then declined. This paper investigates the impact of the...