We study how banks' capital level affects the extent to which they engage in liquidity transformation. We first …-ons. We find that banks engage in less liquidity transformation when their capital increases, which suggests that capital and … liquidity requirements are at least to some extent substitutes. We also find that this substitution is mostly driven by small …

I revisit the Diamond-Dybvig model of liquidity insurance in the presence of hidden trades. The key result is that in … this environment deposit-taking banks are not necessary for the efficient provision of liquidity. Mutual funds are … constrained efficient when supplemented with the same government liquidity regulation that is required to make a banking system …

Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short …-term resilience. We investigate the effects of such liquidity regulation on bank liquid assets and liabilities. Results indicate co …-integration of liquid assets and liabilities, to maintain a minimum short-term liquidity buffer. Still, microprudential regulation …

After the crisis, bank regulators are considering mitigating liquidity risk by introducing quantity limits on liquidity … and maturity mismatch. We argue that aggregate liquidity risk can be reduced with little deadweight loss by encouraging … readily observable variable correlated with systemic liquidity risk (e.g. the LIBOR-OIS spread) is above a trigger threshold …

The aim of this paper is to analyze the liquidity levels of various banks in the UAE for the period 2005-2009. To … understand the behavior of liquidity indicators especially during the financial crisis, the researcher will analyze the four … liquidity indicators over the years 2005 to 2009. The findings highlight how the banks in question have been impacted by the …

liquidity regulations. Basel III and the capital stress tests introduced new requirements and new definitions while retaining … find that the market pricing of bank debt appears to have responded to changes in liquidity measures, especially at large …

We analyze the pledging behavior of Euro area banks during the introduction of the liquidity coverage ratio (LCR). The … national liquidity requirements to proxy for banks' incentives to exploit this differential treatment of central bank eligible … national liquidity requirement pledge more and less liquid collateral than banks with a preceding national liquidity …

This study investigates the amount of liquidity that is necessary to settle a given network of financial obligations … a flow network technique to investigate how the interconnected feature could affect the required liquidity. Our main … fundamental perspective of how a hub or other network structures affect the required liquidity. We further investigate the …