In the presence of macroeconomic shocks severe enough to threaten the liquidity or solvency of the banking system, the …

maturities with the risk of systemic crises. Pecuniary externalities make unregulated debt maturities inefficiently short. The …

liquidity and solvency shocks. It explains the asset price anomalies and bank lending freeze during the crisis. The paper shows …

liquidity and solvency shocks. Extending the work by Cao & Illing (2009a, b), it is shown that systemic liquidity shortage … extra cost for banking regulation and makes some schemes that are optimal under pure illiquidity risks (such as liquidity …

We study efficiency properties of competitive economies in which banks provide liquidity insurance and interact on …

Pecuniary externalities in models with financial friction justify macroprudential policies for preventing economic …

This paper discusses liquidity regulation when short-term funding enables credit growth but generates negative systemic … risk externalities. It focuses on the relativemerit of price versus quantity rules, showing how they target different … containing risk and preserving credit quality, while quantity-based fundingratios are distorsionary. Liquidity buffers are either …

This paper analyses the impact of different treatments of government bonds in bank liquidity regulation on financial … stability. Using a theoretical model, we show that a sudden increase in sovereign default risk may lead to liquidity issues in … the banking sector, implying the insolvency of a significant number of banks. Liquidity requirements do not contribute to …