Bucher, Monika; Dietrich, Diemo; Hauck, Achim - 2013
Business cycles imply liquidity risks for banks. This paper explores how these risks influence bank lending over the … eliminates failures but stops lending for larger liquidity risks whereas a liquidity ratio might be a way to reduce risk … cycle. With forward-looking banks, lending cycles, credit booms and busts, or suppressed and highly fragile bank systems can …