objectives for reserves (liquidity, safety, and return) into objective functions for strategic reserves management. Stochastic … strategic reserves management model is illustrated that trades off expected net returns with costs and liquidity issues related …

retail banking. We argue that the distribution of regional liquidity shocks may pose a natural limit to the extent of cross … regional bank mergers. Imposing a symmetry restriction on the underlying stochastic structure of liquidity shocks we find that …

We discuss the notion of liquidity and liquidity risk within the financial system. We distinguish between three … different liquidity types, central bank liquidity, funding and market liquidity and their relevant risks. In order to understand … the workings of financial system liquidity, as well as the role of the central bank, we bring together relevant literature …

Liquidity occupies a central importance for many areas of finance. But there are very disparate views of liquidity, and … correspondingly many different policy implications attached to these views. In this paper, I consider the many faces of liquidity and … their implications for financial market stability. In particular, I focus on the traditional economics view of liquidity as …

uncertainty regarding their liquidity needs. This paper examines the efficiency of the interbank lending market in allocating … 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 …