recourse to the LOLR facility (a) to derive banks’ willingness-to-pay for liquidity through a one-week repo and (b) to show … results suggest (i) that banks’ willingness-to-pay for liquidity indeed reflects refinancing conditions in the interbank …We use a unique data set that comprises each bank’s bids in the Eurosystem’s main refinancing operations and its …

, not defined in a market, but by the collateral frameworks and interest rate policies of central banks. Using the … on financial markets and the wider economy. They can, for example, bias the private provision of real liquidity and …

We analyze the pledging behavior of Euro area banks during the introduction of the liquidity coverage ratio (LCR). The … national liquidity requirements to proxy for banks' incentives to exploit this differential treatment of central bank eligible … national liquidity requirement pledge more and less liquid collateral than banks with a preceding national liquidity …

We empirically investigate why wholesale funding is fragile by providing the first study of how individual banks borrow …, we find that banks with low credit worthiness replace unsecured borrowing with secured loans. Moreover, riskier lenders … provide more secured loans to replace unsecured lending, which is not consistent with speculative or precautionary liquidity …

lends it to banks in distress. When banks cannot borrow, the economy has a unique equilibrium that is not Pareto optimal …

provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …

The paper reports the outcome of the stress-testing of liquidity risk in the TARGET2 payment system, with the study … resilience of the system, defined as the network of its participants, and the appropriateness of liquidity levels under tightened … liquidity conditions. The scenarios analysed are based on extreme shocks to the value of collateral of different levels and …

The failure of a financial institution (banks and microfinance institutions) to meet its payment obligations can have … general. Central banks, as monetary authorities, regulators, and overseers of a country's payment infrastructures must monitor … the liquidity risk of participants in those systems in order to prevent in time any event of this nature. To do this, the …

losses. Thirdly, the ECB can draw on substantial reserves of the euro area national banks. …