to Basel III macro-prudential frameworks and manage their liquidity in the interbank market. The Central Bank performs … type and management strategy of the bank, leading to the ''one-size-fits-all'' problem. Finally, we found that additional …

microfounded network model with endogenous network formation to analyze the impact of central banks' monetary policy interventions … multiple bank defaults driven by common shock exposure on asset markets, direct contagion via the interbank market, and … firesale spirals. The central bank injects or withdraws liquidity on the interbank markets to achieve its desired interest rate …

This paper studies a central bank's optimal interest rate corridor choice in the presence of an endogenous interbank … network. We first provide a characterization of the unique equilibrium of banks' liquidity holdings for any network of credit … lines. Then, we endogenize the network and show that every equilibrium network is a complete coreperiphery graph. Central …

address the following questions. How are macroeconomic shocks transmitted to bank risk and other banking variables? What are … the sources of bank heterogeneity, and what explains differences in individual banks’ responses to macroeconomic shocks …? Our paper has two main findings: (i) Average bank risk declines, and average bank lending increases following expansionary …

risk both in the short and the long run. We furthermore decompose the systemic risk measure in an individual bank risk … risk of an individual bank while macroprudential policy targets systemic risk by addressing the interlinkages and common …

regulation, the European Central Bank provided substantial monetary policy easing, for instance the release of capital buffers …

, 2015), which include firm-bank and bank-bank networks in the original macroeconomic model in Macroeconomics from the bottom …

., Gaffeo, E., Cirillo, P. and Gallegati, M. (Macroeconomics from the bottom-up, 2011) with the inclusion of a bank-bank network …