for banks. Bank lending behavior responds significantly to reserve requirements and liquidity positions. Our analysis … allows us to identify a new channel that we name as the "liquidity channel". The channel works through a decline in bank … remained largely as a black-box. In this paper, we use bank-level data to explore the interaction between RR and bank lending …

, undermining bank balance sheets and creating a global credit contraction. One consequence has been a dramatic shift in monetary … analysing the imapct of both central bank operations on commercial bank balance sheets, credit and the money supply. This is an … extension of standard models of liquidity to a macro-monetary setting in which commercial bank money finances working capital …

The Federal Reserve injected unprecedented liquidity into banks during the recent crisis through the discount window …