This article presents a dynamic approach to liquidity based on uncertainty as conceptualized by Knight, developed in a … theory of long-term expectations by Keynes, and applied to banking by Minsky. This perspective reveals that banks perform … conventions of safety. When uncertainty returns to the forefront, acceptance of private money is compromised and a liquidity …

The article deals with the liquidity risk in the banks in the context of the financial crisis. At first, the balance … sheet and market liquidity are defined and the main principles of the methods for measuring liquidity risk, which banks use …, are identified. Then follow review of main challenges of managing the liquidity of banks. Finally, it discusses …

The failure of Lehman Brothers highlighted the severe lapses in risk management and regulatory oversight that brought … on and intensified the global financial crisis. This paper presents a structural credit risk model that provides useful … insufficient collateral compounded the effects of dangerously high leverage and resulted in undercapitalization and excessive risk …

We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment … banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We …

We investigate the consequences of banks' liquidity hoarding behavior for the stability of the financial system … role of liquidity hoarding in the 2007-2009 financial crisis, we incorporate banks' hoarding behavior in a standard … potential solvency contagion, a market shock leads to banks' liquidity hoarding that may generate problems of short-term funding …

We develop a model in which asset commonality and short-term debt of banks interact to generate excessive systemic risk …. Banks swap assets to diversify their individual risk. Two asset structures arise. In a clustered structure, groups of banks …

.g. liquidity, also play a role. For financial researchers the model has several advantages as it allows one to disentangle which … robustness of a bank when it comes to risks that affect both the solvency and liquidity situation of the bank. …

. There are two main results: First, if all banks have enough liquidity so that they can honor their short-term obligations, a … financial transactions tax is entirely neutral. Second, in a model with correlated investment risk and short-term financing of …

have only a surprisingly modest impact, we find a significantly enhanced contagion risk in networks containing institutions …