' long-term leverage choices and an "interim" inefficiency because it distorts agents' short-term liquidity management. I … derive important implications for central bank policy. …

take account of the systemic dimension of liquidity stress, standard portfolio theory is used. Three sub-indices, that …This paper introduces a coincident indicator of systemic liquidity risk in the Italian financial markets. In order to … reflect liquidity stress in specific market segments, are aggregated in the systemic liquidity risk indicator in the same way …

We investigate the consequences of banks' liquidity hoarding behavior for the stability of the financial system … role of liquidity hoarding in the 2007-2009 financial crisis, we incorporate banks' hoarding behavior in a standard … potential solvency contagion, a market shock leads to banks' liquidity hoarding that may generate problems of short-term funding …

marketplace such as a supermarket or a stock exchange with adequate liquidity. Further, people must have confidence that such a … well-functioning marketplace will also exist in the future. Market liquidity risk is the risk that the market will function … effects of market liquidity risk on asset pricing, investment management, corporate finance, banking, financial crises …

How does banking competition affect credit provision and growth? How does it affect financial stability? In order to … identify the causal effects of banking competition, we exploit a discontinuity in bank capital requirements during the 19th … century National Banking Era. We show that banks operating in markets with lower entry barriers extend more credit. The …

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 …

Alongside other non-bank financial intermediaries, open-ended funds that invest in bonds ("bond OEFs") have grown … dealing with large investor redemptions in the presence of liquidity mismatches. Their tools notwithstanding, bond OEFs had to … liquidate assets on an elevated scale, thus collectively adding to bond market pressures. Without central bank interventions …

This paper develops a theory in which heterogeneity in bank capital choices arises in a general equilibrium despite ex … continued access to funding liquidity but low-capital banks do not. Inter-bank trading in legacy assets allows some frozen banks … ante identical banks. In a future state, the credit market is partially frozen in a crisis - high-capital banks have …