for complying with the NSFR liquidity requirement. The suggested approach, which is also flexible enough to be applied in … results, banks react to the introduction of the NSFR by strongly increasing their high-quality liquid assets, as well as … fundamentally altering their short-term interbank funding to long-term. In addition, assuming no market frictions in the market for …

In December 2010, the Basel Committee on Baking Supervision introduced the liquidity coverage ratio (LCR) standard for … securities. This study attempts to evaluate the impact of the LCR specification on the funding structures of banks in emerging … deposit funding more than they would otherwise do?" The study found that the LCR charge has been effective in persuading banks …

We examine liquidity creation per unit of assets by banks subject to the Liquidity Coverage Ratio (LCR) using the … liquidity measures Liquidity Mismatch Index (LMI) (Bai et al., 2018) and BB (Berger and Bouwman, 2009). We identify the LCR …. We find that, since 2013, there has been reduced liquidity creation by LCR banks compared to non-LCR banks, occurring …

in absorbing liquidity risk originated from loan contract. We focus on the Australian syndicated loan market and the two … intensive loans, whilst revolving loans are liquidity intensive as they can be drawn-down at any time by the borrower. We find … evidence suggesting that Australian domestic banks are more willing to take liquidity risk. In particular, the proportion of …

We investigate two competing explanations for commercial bank distress during financial crises: liquidity shortages and … solvency concerns. If liquidity shortages cause distress, a lender of last resort can help by providing funds to banks having … trouble rolling over short-term debt and facing potential fire sales. However, if financial crises mainly reduce funding for …

banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We …We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment … find that most banks do not experience funding declines during crises. Banks that do face debt shortages circumvent fire …

capital within two years. Our findings support regulators' suspicions that over-reliance on short-term funding and …