Combining deposit taking with credit line provision saves on the liquidity costs banks incur to meet the liquidity … liquidity on demand to depositors and corporations exposes them to a risk of a concurrent run on their assets and liabilities …. This finding is important because concurrent runs pose significant liquidity risks to banks …

We study the role of captive finance in the car loan market when manufacturers' liquidity demand increases. Using a new … multi-country dataset on securitized car loans, we show that captive lending enables a liquidity constrained integrated … exploit quasi-exogenous variation in manufacturers' liquidity cost and need following the Volkswagen emissions scandal to …