This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank … cheaply, effectively shifting the risk of some of the potential sovereign default losses on the common central bank. …

. However, bank customers will only turn to the new business model of web-based financial intermediation if the economic …

banks submit in Term Deposit Facility operations, a Federal Reserve tool created to manage the quantity of central bank … banks when term deposits qualify for the LCR. These results suggest that liquidity regulation affects bank demand in …

competition. Here, we employ a novel approach to account for IRS that are both unexpected and effective for a bank’s business … theory that monopolistic firms undersupply the market when utilizing their high pricing power in the bank competition …–liquidity creation nexus. While positive IRS per se lead to an increase in bank liquidity creation, we find that a high bank …

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