liquidity provision and the roles of the public budget and the central bank. The comparison also reveals that the role of fiscal … financial stability. This paper extends the existing research by zooming in on the specific topic of liquidity provision to … banks in resolution. It examines the provision of liquidity in the United States, the United Kingdom, Japan, Canada and the …

Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence … and prevent bank runs. However, as the experiences of some European countries, most notably Ireland, have demonstrated … rollover risks of a bank and a government, which are connected through the government's guarantee of bank liabilities. We show …

liquidity regulation may interfere with the central bank's implementation of monetary policy. We find that when the market …. This interaction is not yet well understood. We focus on the newly introduced Liquidity Coverage Ratio (LCR) and how it … equilibrium is suboptimal due to asymmetric information, both the central bank and the regulator can act to improve welfare. These …

This paper analyzes a government's incentives to provide fi nancial assistance to a public bank which is hit by a … liquidity shock. We show that discretionary decisions about emergency liquidity assistance result in either excessively small or … excessively large liquidity injections in a wide variety of circumstances. Also, adding a lender of last resort does not generally …

We investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a … liquidity regulation. Our identification strategy uses a regression kink design that relies on the variation in a marginal high … credit supply. Liquidity requirements also depress banks' profitability, though some of the regulatory costs are passed on to …

In this paper we introduce two measures, the Systemic Liquidity Buffer (SLB) and the Systemic Liquidity Shortfall (SLS …) to assess liquidity in the banking system. The SLB takes an aggregated perspective on liquidity risks in the banking … system. In contrast, the SLS focusses on the problematic banks which suffer a liquidity shortfall. These measures provide an …

This study examines the liquidity dynamics of banks in emerging market economies. Using annual data of 91 commercial … banks from 11 countries, the study established that banks in emerging markets have target liquidity ratios they pursue and … liquidity dynamics by banks in emerging market economies. …