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in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase …We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in a differentiated loan market, hold reserves against liquidity shocks, and refinance in the interbank market. A merger …
Persistent link: https://www.econbiz.de/10009635892
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 …
Persistent link: https://www.econbiz.de/10009636521
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 …
Persistent link: https://www.econbiz.de/10009635957
From the onset of the 2007-2009 crisis, the Federal Reserve and the European Central Bank have aggressively lowered interest rates. Both sets of changes are at odds with an anti-inflationary stance of monetary policy; indeed, as the crisis began in August 2007 inflation expectations were high...
Persistent link: https://www.econbiz.de/10009640318
Persistent link: https://www.econbiz.de/10009640492
particular, we investigate the extent to which a spillover of risk among hedge funds through redemptions and failures of other … funds has affected the probability of fund failure. We find that risk spillover is significantly related to the failure … within the same investment style are adversely affected through both channels of risk spillover. In addition, we find that …
Persistent link: https://www.econbiz.de/10009640467
With the overarching objective of reducing systemic risk, EMIR introduces the obligation to clear certain classes of …
Persistent link: https://www.econbiz.de/10010392275
With the overarching objective of reducing systemic risk, EMIR introduces the obligation to clear certain classes of …
Persistent link: https://www.econbiz.de/10010392276
Persistent link: https://www.econbiz.de/10011287830
The paper analyses the relationship between deposit insurance, debt-holder monitoring, and risk taking. In a stylised … debt holders. We further find that credible limits to the safety net reduce risk taking of smaller banks with low charter …
Persistent link: https://www.econbiz.de/10009636525