Maintaining sufficient liquidity in the financial system is vital for financial stability. However, since returns on … believe they can rely on other institutions for liquidity support. We examine whether state banks in the early 1900s took …

of idiosyncratic liquidity shocks - arising from deposits outflow at the bank level - and of the aggregate liquidity … during idiosyncratic liquidity shocks, while central bank liquidity contributes to smooth the impact of aggregate liquidity …This paper examines the impact of exogenous liquidity shocks in the unsecured interbank market. We evaluate the effects …

persistence of liquidity shocks. Following a theory of long-term interbank funding a financial system which is modeled as a micro … policy and therefore ultimately the real economy. In particular, it facilitates banks' liquidity management. This paper aims … at extending the literature which views interbank markets as mutual liquidity insurance mechanism by taking into account …

, intensified by a reduction in peer monitoring. Moreover, changes in the central bank's interest-rate corridor have a direct effect …