This paper analyses the effect of the crisis on central bank's refinancing and interbank market. It uses monthly banking-group data on all banks operating in Italy from the inception of the single Eurosystem monetary policy to August 2011. It investigates both directions of the casual nexus...

This paper tests the hypothesis of liquidity hoarding in the Italian banking system during the 2007-2011 global financial crisis. According to this hypothesis, in periods of crisis, interbank markets stop working and central banks' interventions are ineffective because banks hoard the liquidity...

This paper tests the hypothesis of liquidity hoarding in the Italian banking system during the 2007-2011 global financial crisis. According to this hypothesis, in periods of crisis, interbank markets stop working and central banks' interventions are ineffective because banks hoard the liquidity...

By providing liquidity to depositors and credit-line borrowers, banks can be exposed to double-runs on assets and liabilities. For identification, we exploit the 2007 freeze of the European interbank market and the Italian Credit Register. After the shock, there are sizeable, aggregate...

This is the first paper to analyse the relationship between single banks' positions vis-à-vis the central bank and the interbank market and to perform an extensive test of the liquidity hoarding hypothesis using micro data. According to the most critical version of the hypothesis, during the...

Monetary policy transmission may be impaired if banks rebalance their portfolios towards securities. We identify the bank lending and risk-taking channels of monetary policy by exploiting – Italian's unique – credit and security registers. In crisis times, with higher ECB liquidity, less...