In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the … to meet its liquidity demand. We use quarterly data of bilateral interbank credit exposures between all German banks from … concentration of credit relationships and the position of a bank in the network topology of the system influence the bank’s ability …

unique collateral leverage channel, which cannot be replicated by standard capital requirements. Through this channel, banks … can expand loan supply and deposit issuance when they face liquidity constraints, by raising the collateral value of their …

In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the … to meet liquidity demand. We use quarterly data of bilateral interbank credit exposure among all German banks from 2000 … that incentives to diversify banks' liquidity risk dominate the benefits of private information. When the network position …

In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the … to meet its liquidity demand. We use quarterly data of bilateral interbank credit exposures between all German banks from … by the individual banks in the European Central Bank's (ECB) weekly repo auctions. The bids measure each bank …

In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the … to meet its liquidity demand. We use quarterly data of bilateral interbank credit exposures between all German banks from … by the individual banks in the European Central Bank's (ECB) weekly repo auctions. The bids measure each bank …

We construct a model of consumer credit with payment frictions, such as spatial separation and unsynchronized trading …

) system. A pure RTGS system typically requires participants to hold large amounts of intraday liquidity in order to settle … their payment obligations. Implementing one or more liquidity-saving mechanisms (LSMs) can reduce the amount of liquidity … participants need to hold. This paper investigates how much liquidity requirements can be reduced with the implementation of …

This paper studies the optimal intraday pricing in payment systems and its impact on banks' payment behaviour and … intraday liquidity management. A model is developed to compare the performance of two different mechanisms to reduce payment … better outcome unless the payment system experiences a system-wide liquidity shock. We show that settlement delay can be …

indeterminacy of equilibrium. Previous work has shown that providing costless liquidity through a discount window has mixed effects … in terms of these criteria: It prevents episodes of high liquidity demand from causing crises but can lead to …

We study how the subjective beliefs about loan repayment on the side of liquidity-constrained banks affect the central … bank's choice of collateral standards in its lending facilities. Optimism on the side of banks, entailing a higher … banks' belief distortions and always induce the socially optimal allocation. Under uncertainty about beliefs, the central …