liquidity until their collapse. An official report (SIC, 2010) has, however, exposed severe weaknesses in the banks’ assets and … borrowers, while they should have been deleveraging and securing their liquidity positions in foreign currency. The banks also … before the collapse of October 2008 the banks all reported strong liquidity positions. These reports were misleading, but we …

The liquidity risk is one of the drivers of uncertainty in the banking activities. It could worsen the impact of shocks …

related to the liquidity of the markets. Since bid-ask spreads dramatically surged during the financial crisis (2008-2009) and …

of default between a solvency and a liquidity component. The results show a gradual build-up of fragilities before 2008 … in most countries. Increased probabilities of default are shown to be mainly driven by a surge in liquidity risk, even …

liquidity management. In theoretical part the case of banking system liquidity surplus is analyzed focusing on creation of … liquidity through FX operations, sterilization of liquidity and main sources of liquidity absorption. In this context it is … system liquidity needs and to cover issued currency in circulation and bank´s reserves by net foreign assets. In empirical …