fully collateralized repo market allows Central Banks to provide the adequate aggregated amount of liquidity and leave the … a framework where liquidity shocks cannot be distinguished from solvency ones and ask whether there is a need for a LOLR …

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …

This paper provides a simple weekly model of the regular supply of liquidity in the euro area, with a view to … understanding the functioning of the euro area money market. The main result of the analysis is that liquidity has normally been … deviations of the overnight rate from the main refinancing rate. Moreover the paper finds that liquidity has affected the …

liquidity effects are cyclical, confined to the end of reserve maintenance periods, and are not transmitted along the money …

On several occasions during the period 2001-2003, the European Central Bank (ECB) decided to deviate from its "neutral …" benchmark allotment rule, with the effect of not alleviating a temporary liquidity shortage in the banking system. This is … the present paper, we show that when the monetary authority cares for both liquidity and interest rate conditions, the …