A standard repurchase agreement between two counterparties is considered to examine the endogenous choice of collateral … assets, the feasibility of secured lending, and welfare implications of the central bank’s collateral framework. As an …

the global banking system. The global interbank market constitutes a major part of the global banking system. The market …-border interbank market. First, we estimate the bilateral exposures matrix using aggregate financial data on loans and deposits from …-SIBs) play a central role in the global interbank market. The theoretical default analysis showed a few contagious defaults …

The industrial organization approach to banking is extended to analyze the effects of interbank market activity and … risk averse in an environment where there is no interbank market and liquidity regulation. Introducing a buoyant interbank … separating effect of interbank money markets and recreate endogenous risk aversion of banks. …

from trading assets for cash. -- interbank market ; fire sale …

To avoid illiquidity spillovers and basis risk in swaps, interbank lenders are especially cautious about whether … interbank borrowers can meet their claims. This paper is about examining whether the incentive of interbank lenders to penalize … risky borrowers can reduce the liquidity risk-taking of borrowers. We find that interbank borrowers, especially small and …

empirically shows that the central counterparty (CCP)-based euro interbank repo market features this stability. Using a unique and … different repo markets shows that anonymous CCP-based trading, safe collateral, and the absence of an unwind mechanism are the …