We find that banks subject to the Liquidity Coverage Ratio (LCR) create less liquidity per dollar of assets in the post …-off between lower liquidity creation and greater resilience from liquidity regulations …

We examine liquidity creation per unit of assets by banks subject to the Liquidity Coverage Ratio (LCR) using the … liquidity measures Liquidity Mismatch Index (LMI) (Bai et al., 2018) and BB (Berger and Bouwman, 2009). We identify the LCR …. We find that, since 2013, there has been reduced liquidity creation by LCR banks compared to non-LCR banks, occurring …

This article analyzes the determinants of liquidity crises based on the dynamics of banking and finance under Knightian … financial instability derived from Keynes's theory of liquidity and expectations. Conventional expectations allow overcoming … uncertainty via the liquidity of secondary markets and, in turn, of banks' liabilities that are accepted as money. However, the …

This paper investigates the determinants of liquidity crises based on the dynamics of banking and finance under … endogenous financial instability derived from Keynes's theory of liquidity and expectations. Conventional expectations allow … overcoming uncertainty via the liquidity of secondary markets and, in turn, of banks' liabilities that are accepted as money …

regulatory liquidity requirements on bank behavior. A multi-stage decision situation allows for considering the interaction … between credit risk and liquidity risk of banks. This interaction is found to make a risk neutral bank behave as if it were … risk averse in an environment where there is no interbank market and liquidity regulation. Introducing a buoyant interbank …

We investigate 62 Dutch banks' liquidity behaviour between January 2004 and March 2010, when these banks were subject … to a liquidity regulation that is very similar to Basel III's Liquidity Coverage Ratio (LCR). We find that most banks … interaction between capital and liquidity buffers. However, this interaction turns out to be weaker during a crisis. Although not …

This study investigates spillover effects of banks' liquidity risk control on the real economy by using the … introduction of the Basel III liquidity regulation as shocks to banks. Since the Basel Committee's endorsement of this regulation … in 2010, banks exposed to high liquidity risk have significantly reduced the proportion of loans in their portfolio. In …

generated by the firm but borne by society. Recent advances in measuring liquidity creation (Berger and Bouwman, 2009) and … that CEO pay-performance incentives reduce both positive liquidity creation externalities and negative systemic risk … externalities, while pay-risk incentives increase both externalities. Our findings infer a tradeoff for bank regulators …

Global liquidity flows are largely channeled through banks and nonbank financial institutions. The common drivers of … global liquidity flows include monetary policy in advanced economies and risk conditions. At the same time, the sensitivities … of liquidity flows to changes in these drivers differ across institutions and have been evolving over time …

The article deals with the liquidity risk in the banks in the context of the financial crisis. At first, the balance … sheet and market liquidity are defined and the main principles of the methods for measuring liquidity risk, which banks use …, are identified. Then follow review of main challenges of managing the liquidity of banks. Finally, it discusses …