We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete …

The classical Bagehotu0092s conception of a Lender of Last Resort (LOLR) that lends to illiquid banks has been … fully collateralized repo market allows Central Banks to provide the adequate aggregated amount of liquidity and leave the … responsibility of lending uncollateralized to the banks. The object of this paper is to analyze rigorously these issues by providing …

debt holders. We further find that credible limits to the safety net reduce risk taking of smaller banks with low charter …

autarchic (i.e. fundamental) FX returns. The model is calibrated and tested on the Czech koruna/euro exchange rate in a setting … with seven Czech and euro area asset returns. …