dependent on banks' solvency and liquidity exposures. Our results highlight that it is necessary to take heterogeneity of …

-quality firms. Public liquidity support preserves the overall production capacity. However, by dampening the cleansing effects, it … the expectations of liquidity support that motivate low-quality firms to overinvest pre-crisis. Finally, the size of … on savings discourage firms from self-insurance against crises through internal liquidity accumulation …

' funding liquidity and solvency. Both asset liquidity and central bank haircuts are modelled as power functions within the unit … interval. Funding stability is captured as strategic bank run game in pure strategies between depositors. Asset liquidity, the … bank collateral and why a sudden non-anticipated reduction of asset liquidity, or a tightening of the collateral framework …

Eurosystem against non-HQLA collateral. This paper quantifies the extent of this liquidity transformation and finds that on … intentional liquidity transformation using two novel approaches: The first approach compares the liquidity profile of already … pledged vs new collateral, and the second approach compares the liquidity profile of the pool of pledged securities with banks …

The paper reports the outcome of the stress-testing of liquidity risk in the TARGET2 payment system, with the study … resilience of the system, defined as the network of its participants, and the appropriateness of liquidity levels under tightened … liquidity conditions. The scenarios analysed are based on extreme shocks to the value of collateral of different levels and …