We study efficiency properties of competitive economies in which banks provide liquidity insurance and interact on … secondary asset markets. While all banks are subject to extrinsic risk, a bank's portfolio choice determines whether it is prone …

underlying assets. Using the SEC Rule on mutual fund liquidity risk management in 2016 as an exogenous shock, I show that mutual …I study how liquidity management affects fragility, or vulnerability to fund flows, in mutual funds and their … stabilized fund flows and flow-performance sensitivity. Overall, liquidity management could be costly for investors …

This article analyzes the determinants of liquidity crises based on the dynamics of banking and finance under Knightian … financial instability derived from Keynes's theory of liquidity and expectations. Conventional expectations allow overcoming … uncertainty via the liquidity of secondary markets and, in turn, of banks' liabilities that are accepted as money. However, the …

This article presents a dynamic approach to liquidity based on uncertainty as conceptualized by Knight, developed in a … conventions of safety. When uncertainty returns to the forefront, acceptance of private money is compromised and a liquidity …. Insulating bankers from market pressure for high-risk, high-returns strategies should be allowed too …

provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …

subject to rollover risk. A bank’s optimal borrowing trades off the benefit from investing additional funds into profitable … assets with the cost of greater risk of a run by bank creditors. Changes in the interest rate affect the price and amount of …

subject to rollover risk. A bank's optimal borrowing trades off the benefit from investing additional funds into profitable … assets with the cost of greater risk of a run by bank creditors. Changes in the interest rate affect the price and amount of …

Can banks maintain their advantage as liquidity providers when exposed to a financial crisis? While banks honored their … credit lines drawn by firms during the 2007-09 crisis, this provision of liquidity by banks was only possible because of …

Can banks maintain their advantage as liquidity providers when exposed to a financial crisis? While banks honored their … credit lines drawn by firms during the 2007-09 crisis, this provision of liquidity by banks was only possible because of …

Can banks maintain their advantage as liquidity providers when exposed to a financial crisis? While banks honored their … credit lines drawn by firms during the 2007-09 crisis, this provision of liquidity by banks was only possible because of …