asset positions once the aggregate interbank funding market experiences a dry-up. To this regard, we show that liquidity … strategy further helps us to analyse how disruptions in the bank headquarters’ interbank market can lead to liquidity and …

This paper presents a theory that explains why it is beneficial for banks to engage in circular lending activities on …

demand for liquidity in the interbank market as wells as banks' access to this market. Results indicate that riskier banks … pay higher prices and borrow less liquidity, concurrent with the existence of market discipline. More capitalized and … higher prices and hoard liquidity when liquidity positions across them are more imbalanced and during a monetary policy …

modelling framework could be used both as a crisis management tool to help inform decisions on capital/liquidity infusions in …

versus foreign lenders. Crisis shocks reduce the supply of crossborder liquidity, with stronger volume effects than pricing … liquidity, but without fostering strong cross-border financial reintegration. …

This paper shows that depending on the distribution of banks' uncertain liquidity needs and on how monetary policy is …