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 … persistence of liquidity shocks. Following a theory of long-term interbank funding a financial system which is modeled as a micro …

asset positions once the aggregate interbank funding market experiences a dry-up. To this regard, we show that liquidity … strategy further helps us to analyse how disruptions in the bank headquarters’ interbank market can lead to liquidity and …

This paper shows that depending on the distribution of banks' uncertain liquidity needs and on how monetary policy is …

This paper shows that depending on the distribution of banks' uncertain liquidity needs and on how monetary policy is …

Although climate-induced liquidity risks can cause significant disruptions and instabilities in the financial sector … emergence of liquidity crises through interbank market dynamics. Our simulations show that the financial system could experience … serious funding and market liquidity shortages due to climate-induced liquidity crises. Our investigation contributes to our …