We analyse the impact of the Liquidity Coverage Ratio (LCR) on the demand for central bank reserves in the euro area with difference-in-differences estimation techniques. Using a novel dataset and an identification strategy that exploits the cross-country heterogeneity in the regulatory...

This paper provides a framework to examine the potential balance sheet adjustments of individual financial institutions for complying with the NSFR liquidity requirement. The suggested approach, which is also flexible enough to be applied in assessing the potential balance sheet impact of other...