provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …

We analyze how the Lehman and sovereign crises affect cross-border interbank liquidity, exploiting euro … foreign lenders. Crisis shocks reduce the supply of cross-border liquidity, with stronger volume than pricing effects. On the … margin—riskier borrower banks suffer more. Moreover, the cross-border liquidity crunch is substantially stronger for term …

transparency. We explain the asymmetry in risk-transfer between sovereign and banking sector, following the introduction of a …

-sheet transparency. We explain the asymmetry in risk transfer between the sovereign and the banking sector, following the introduction of …

This paper develops a debt-run model to study the effects of liquidity injections on debt markets in the presence of a … terms of debt. We show that when equityholders have a large bargaining power, liquidity injections into distressed firms can …

liquidity tightened after the Lehman collapse but there is no evidence of fire sales in the German banking sector. Instead, we … observe a broad-based flight to liquidity. The European Central Bank's unconventional monetary policy had a strong impact on … banks' trading behavior by inducing shifts towards eligible securities and reducing pressure on market liquidity. This …

When financial intermediaries’ key characteristic is provision of liquidity through their liabilities, with financial … frictions the financial sector in the aggregate is likely to over-accumulate equity, thus decreasing liquidity provision and … financial sector. This policy increases the likelihood that intermediaries provide more liquidity and improves the stability of …

cross-section, leverage was the primary determinant of credit spreads and investment during the GFC, but liquidity was more … GFC resembled a combination of productivity and financial shocks, while COVID-19 also featured liquidity shocks. We study … the state-dependent effects of credit and liquidity policies …

liquidity recovery. Using novel, micro data of the French banking system on the pool of collateral eligible to ECB open market … operations, we construct a "liquidity mismatch indicator (LMI)" for the aggregate banking sector that highlights the central bank … influence on the bank liquidity condition. Our results show that central bank liquidity and haircut policies have indeed helped …

We consider a model in which banks vulnerable to liquidity crises may receive support from the lender of last resort … (LLR). Higher liquidity standards, though costly to banks, give the LLR more time to find out the systemic implications of … denying support to the banks in trouble. By modifying banks' prospects of being supported in a crisis, liquidity standards …