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 …

We evaluate the effects of post-crisis liquidity regulation on the U.S. banking system. We find that regulated banks … have substantially improved their liquidity ratios by holding more liquidity buffers and terming out their liabilities …. However, some liquidity transformation has migrated to intermediaries not subject to liquidity regulation, such as small banks …

incentives both discipline bankers, but with different consequences. Greater use of equity leads to lower ex ante bank liquidity …

We analyze the determinants of individual bank failures arising from solvency and liquidity shortages in a stylized … arising from solvency and liquidity shortages …