We investigate two competing explanations for commercial bank distress during financial crises: liquidity shortages and … solvency concerns. If liquidity shortages cause distress, a lender of last resort can help by providing funds to banks having … trouble rolling over short-term debt and facing potential fire sales. However, if financial crises mainly reduce funding for …

banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We …We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment … find that most banks do not experience funding declines during crises. Banks that do face debt shortages circumvent fire …

the post-crisis regulations—the re-distribution of liquidity among assets with different risk weights assigned to them …

capital within two years. Our findings support regulators' suspicions that over-reliance on short-term funding and …

-to-customer trading increased, though at prohibitively high costs. By improving dealer funding conditions and providing a liquidity …We examine the microstructure of liquidity provision in the COVID-19 corporate bond liquidity crisis. During the two …-primary dealers, shifted from buying to selling, causing dealers' inventories to plummet. Liquidity provisions in electronic customer …

the innovations in the VIX index. Aggregate liquidity can be seen as the rate of change of the aggregate balance sheet of …

Liquidity has its systemic aspect that is frequently neglected in research and risk management applications. We build a … model that focuses on systemic aspects of liquidity and its links with solvency conditions accounting for pertinent … account in a stylised fashion. In particular, we investigate the importance of the channels through which the funding shock to …