Global monetary crisis has proven that the increase of banking liquidity risk followed by banking illiquidity barrier triggers the wide spreading crisis. The economic interdependency among countries causes the widespread global monetary crisis. Monetary crisis in a country always puts the banks...

This paper analyses the impact of the new Basel III liquidity standards, in particular the liquidity coverage ratio (LCR), on the implementation of monetary policy in the Euro area. I develop a conceptual framework to investigate the interaction between the money market and monetary policy...

The new liquidity risk regulation represents the chief innovation introduced by Basel III, following the regulator‘s intention to fix Basel II‘s omissions. We review the substitution effect set off on the bank‘s balance sheets by the new liquidity risk regulation, which dissuades the use...

Real liquidity refers to the real purchasing power of the monetary base. In an economy where banks only take money as deposits, insufficient real liquidity constrains the price level when there is a liquidity shock before banks settle their long-term loan contracts. This leads to strictly...

This is the fifth in a series of seven papers on interest rates and it covers the monetary policy models, a bank liquidity analysis, the concept of quantitative easing in terms of a bank liquidity analysis, and how a QE policy affects interest rates. The seven papers cover: (1) what are interest...

First established during the 1830's, the Enskilda banks were characterized by unlimited owner liability and the right to issue bank notes. Consequently, in Swedish banking history, these banks have been considered to be primitive relics. This paper utilizes new data to revise this picture of the...

A number of empirical analyses of interbank lending rely on indirect inferences from individual interbank transactions extracted from payments data using algorithms. In this paper, we conduct an evaluation to assess the ability of identifying overnight U.S. fed funds activity from Fedwire®...

First established during the 1830's, the Enskilda banks were characterized by unlimited owner liability and the right to issue bank notes. Consequently, in Swedish banking history, these banks have been considered to be primitive relics. This paper utilizes new data to revise this picture of the...

We show that the regulation of bank lending practices is necessary for the optimal provision of private liquidity. In an environment in which bankers cannot commit to repay their creditors, we show that neither an unregulated banking system nor narrow banking can provide the socially efficient...