profiting from lending and incurring greater liquidity risk. We calibrate our model to study quantitatively why banks have …We develop a new framework to study the implementation of monetary policy through the banking system. Banks finance … illiquid loans by issuing deposits. Deposit transfers across banks must be settled using central bank reserves. Transfers are …

the Liquidity Challenge: The Changing Role of Credit Portfolio Management <i>(IACPM and KPMG)</i></li> <li>NUS-RMI Credit …

This policy report analyzes one aspect of the sovereign-bank nexus: the feedback effects between banks and sovereigns … derived from the holdings of sovereign debt in domestic banks. We study how this relationship evolved during the European debt … Facilities. We find evidence of carry trade behavior by banks and we have some mild evidence that this channel may have been …

for banks. Bank lending behavior responds significantly to reserve requirements and liquidity positions. Our analysis …Many central banks in emerging economies have used reserve requirements (RR) to alleviate the trade-off between … allows us to identify a new channel that we name as the "liquidity channel". The channel works through a decline in bank …

reserve requirement policy with bank lending. We identify a new channel that works through a decline in bank liquidity and … affect the funding needs and the liquidity position of the banking system. The consequent changes in bank liquidity have a …

In this paper, we investigate how the dynamic effects of excess liquidity shocks on economic activity, asset prices and … inflation differ over time. We show that the impact varies considerably over time, depends on the source of increased liquidity …

We develop an empirical framework that links micro-liquidity, macro-liquidity and stock prices. We provide evidence of … a strong link between macro-liquidity shocks and the returns of UK stock portfolios constructed on the basis of micro-liquidity … measures between 1999-2012. Specifically, macro-liquidity shocks, which are extracted on the meeting days of the Bank of …

This policy report analyzes one aspect of the sovereign-bank nexus: the feedback effects between banks and sovereigns … derived from the holdings of sovereign debt in domestic banks. We study how this relationship evolved during the European debt … Facilities. We find evidence of carry trade behavior by banks and we have some mild evidence that this channel may have been …

struggling to escape liquidity quicksands and stubbornly low or negative growth and employment trends. At the center of the … monetary policy pivot point. Since November 2011, the ECB has taken on an arguably activist liquidity-provider role relative to … private banks (and, in some important measure, indirectly to sovereigns) while maintaining its long-held post as rhetorical …