by the following types of bank financial distress: 1) low equity ratio; 2) low Tier 1 capital ratio; and 3) losses on … domestic banks. The observed decline in credit is greater among high-risk firms and firms with fewer tangible assets. …

between monetary policy (MP) and bank stability. This technical paper sheds light, quantitatively, on the different mechanisms … underlying the relationship between MP and bank stability. It does so by reviewing microeconometric studies from the academic … touchstone. First, it provides a brief overview of the main theoretical channels linking bank stability and the transmission of …

more at firms expecting bank credit to improve in the future. Three separate unconventional policies by the ECB- the OMT … banks that were expected to increase SME lending due to the policy. Our results enhance our understanding of the bank …

. They trade off the cost of delaying a payment against the cost of borrowing liquidity from the central bank. The … liquidity-saving mechanism (queue). Participants in our model face a liquidity shock and different costs for delaying payments … to show that the design of a liquidity-saving mechanism has important implications for welfare, even in the absence of …

We study two designs for a liquidity-saving mechanism (LSM), a queuing arrangement used with an interbank settlement … system. We consider an environment where banks are subjected to liquidity shocks. Banks must make the decision to send, queue … payment from the queue is conditional on the liquidity shock. With a receipt-reactive LSM, a payment is released from the …

such a large quantity of bank reserves could lead to overly expansive bank lending as the economy recovers, regardless of … the Federal Reserve's interest rate policy. In contrast, we show that the size of bank reserves has no effect on bank … find that large reserve balances do not lead to excessive bank credit and may instead be contractionary. …

This paper considers the welfare effects of introducing a liquidity-saving mechanism (LSM) in a real-time gross …

This paper attempts to quantify the benefits associated with operating a liquidity-saving mechanism (LSM) in Fedwire …

-time gross settlement payment system and the way in which these incentives change with the introduction of a liquidity … in which each bank must receive a payment that provides sufficient funds to allow the settlement of its own payment. In …

funds and the optimal policy of a central bank in response to liquidity shocks. We show that, when confronted with a … distributional liquidity-shock crisis that causes a large disparity in the liquidity held by different banks, a central bank should … uncertainty regarding their liquidity needs. This paper examines the efficiency of the interbank lending market in allocating …