We employ a proprietary transaction-level dataset in Germany to examine how capital requirements affect the liquidity … average trade size. While non-bank affiliated dealers increase their market-making activity, they are unable to bridge this … gap - aggregate liquidity declines. Our results are stronger for banks with a higher capital shortfall, for noninvestment …

We employ a proprietary transaction-level dataset in Germany to examine how capital requirements affect the liquidity … average trade size. While non-bank affiliated dealers increase their market-making activity, they are unable to bridge this … gap - aggregate liquidity declines. Our results are stronger for banks with a higher capital shortfall, for non …

theory that monopolistic firms undersupply the market when utilizing their high pricing power in the bank competition–liquidity … creation nexus. While positive IRS per se lead to an increase in bank liquidity creation, we find that a high bank …We study the effects of interest rate shocks (IRS) on banks’ liquidity creation. A unique supervisory data set from the …

affect the likelihood and the timing of bank recovery. Severe regulatory measures increase both the likelihood of recovery … conditions also matter for bank recovery. Hence, concerted micro- and macro-prudential policies are key to facilitate distressed … bank recovery. …

affect the likelihood and the timing of bank recovery. Severe regulatory measures increase both the likelihood of recovery … conditions also matter for bank recovery. Hence, concerted micro- and macro-prudential policies are key to facilitate distressed … bank recovery. …

We show that emergency liquidity provision by the Federal Reserve transmitted to non-U.S. banking markets. Based on ….S. facilities via internal capital markets. Using proprietary interest rate data reported to the German central bank, we compare … lending and borrowing rates of banks with and without such access. U.S. liquidity shocks cause a significant decrease in the …

How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …

integrated micro-macro approach with two core virtues. First, we measure the probability of bank distress directly at the bank … level. Second, we integrate a microeconomic hazard model for bank distress and a standard macroeconomic model. The advantage … between bank distress and the real economy. We base the analysis on German bank and macro data between 1995 and 2004. Our …

Liquidity creation is one of banks' raisons d'être. But what happens to liquidity creation and risk taking when a bank … increases to up to around 50 percent when such actions are taken. Second, bank risk taking decreases in the aftermath of … capital injections are followed by lower levels of liquidity creation. The probability of a decline in liquidity creation …

makers reduces distortions in the decision making process, which has implications for the design of bank regulation and …In this paper, we examine how the institutional design affects the outcome of bank bailout decisions. In the German … savings bank sector, distress events can be resolved by local politicians or a state-level association. We show that decisions …