liquidity regulation. Our identification strategy uses a regression kink design that relies on the variation in a marginal high …We investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a … credit supply. Liquidity requirements also depress banks' profitability, though some of the regulatory costs are passed on to …

We study the interplay of capital and liquidity regulation in a general equilibrium setting by focusing on future … default coexist, and bank default is a self-fulfilling prophecy. Capital and liquidity regulation can prevent bank default and … liquidity regulation. Adding liquidity regulation to optimal capital regulation is redundant. …