We show that a liquidity shock can affect the solvency of a bank and cause its default if the bank does not hold enough … over one and two (short) periods relative to the liquidity risk and, more particularly, to liquidity shock scenarios on an … level of liquid assets allowing it to remain solvent for the different liquidity shock scenarios and for both periods (i …

demand shock that firms met during the COVID-19 crisis. That channel dramatically increased short-term liquidity needs during …

Covid-19 shock, during the first months of the pandemic. It dramatically increased short-term liquidity needs in the most …. We argue that taking into account the trade credit channel is critical to properly quantify liquidity shortfalls in …

dependent on banks' solvency and liquidity exposures. Our results highlight that it is necessary to take heterogeneity of …

transactions between firms and by theories that focus on the advantages of liquidity provision along the supply chain. We use the … more constrained relative to their investment needs, do not provide additional liquidity to their suppliers, and increase … acquisition activities once the liquidity crunch dissipates. These firms’ accounts payable increase proportional to their raw …

' funding liquidity and solvency. Both asset liquidity and central bank haircuts are modelled as power functions within the unit … interval. Funding stability is captured as strategic bank run game in pure strategies between depositors. Asset liquidity, the … bank collateral and why a sudden non-anticipated reduction of asset liquidity, or a tightening of the collateral framework …

Liquidity is a key resource that banks have to manage on a daily basis. Large banking groups face the question of how … to optimally allocate and generate liquidity: in a central liquidity hub or in many decentralized branches across … show that volatility is a key driver of the degree of (de-)centralization. As expected, in a deterministic setup liquidity …

This paper provides a more thorough empirical examination of the development and determinants of the liquidity position … and monetary policy implications of the liquidity problems arising in the crisis and stabilization process after that. The … and simultaneously - there was no time for the slow restructuring, thus liquidity needs were higher than generally. …