endogenous financial instability derived from Keynes's theory of liquidity and expectations. Conventional expectations allow …This paper investigates the determinants of liquidity crises based on the dynamics of banking and finance under … overcoming uncertainty via the liquidity of secondary markets and, in turn, of banks' liabilities that are accepted as money …

banks when term deposits qualify for the LCR. These results suggest that liquidity regulation affects bank demand in …We estimate the effects of the liquidity coverage ratio (LCR), a liquidity requirement for banks, on the tenders that … banks submit in Term Deposit Facility operations, a Federal Reserve tool created to manage the quantity of central bank …

term deposits qualify for the LCR. These results suggest that liquidity regulation affects bank demand in monetary policy …We estimate the effects of the liquidity coverage ratio (LCR), a liquidity requirement for banks, on the tenders that … banks submit in Term Deposit Facility operations, a Federal Reserve tool created to manage the quantity of bank reserves. We …

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 …

We consider a model in which banks vulnerable to liquidity crises may receive support from the lender of last resort … (LLR). Higher liquidity standards, though costly to banks, give the LLR more time to find out the systemic implications of … denying support to the banks in trouble. By modifying banks' prospects of being supported in a crisis, liquidity standards …

Post-crisis bank regulations raised market-making costs for bank-affiliated dealers. We show that this can, somewhat … surprisingly, improve overall investor welfare and reduce average transaction costs despite the increased cost of immediacy. Bank … dealers in OTC markets optimize between two parallel trading mechanisms: market making and matchmaking. Bank regulations that …

This paper contributes to the debate on liquidity in resolution by providing a quantitative assessment of liquidity … gaps of banks in resolution in the euro area. It estimates possible ranges of liquidity gaps for significant banks under … different assumptions and scenarios. The findings suggest that, while the average liquidity gaps in resolution are limited, the …

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 …

We employ a proprietary transaction-level dataset in Germany to examine how capital requirements affect the liquidity … average trade size. While non-bank affiliated dealers increase their market-making activity, they are unable to bridge this … gap - aggregate liquidity declines. Our results are stronger for banks with a higher capital shortfall, for non …

Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence … and stave off bank runs. However, as the experience of some European countries, most notably Ireland, has demonstrated … the rollover risks of a bank and a government, which are connected through the government's guarantee of bank liabilities …