the credit risk of their corporate loan portfolios when the latter are used as collateral in the Eurosystem’s monetary … actually used as Eurosystem collateral, particularly for large loans. The less conservative estimates of risk by IRBs relative … to ICASs can be partly explained by banks’ liquidity constraints, but not by their degree of capitalisation. Overall, our …

discussion of the actual implications for liquidity. In this paper, we provide an approximation of the liquidity development in … information about liquidity risk. …

studying an extensive dataset of banks' liquidity uptake and pledged collateral in central bank repos. We document systemic … collateral to demand disproportionately larger amounts of central bank money (liquidity). This holds both before and after the … arbitrage whereby banks funnel credit risk and low-quality collateral to the central bank. Weaker banks use lower quality …

-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 …