. Liquidity and regulatory capital requirements have gained momentum after the 2008 global financial crisis. Meeting the … shareholder's need (i.e profitability) and regulatory requirements (liquidity and capital) is a delicate balance that banks strive …, the findings indicate that higher capital requirements for banks significantly positively influence liquidity. Furthermore …

market liquidity increases with the level of intermediary capital. We also characterize conditions under which intermediaries …We present a model of financial market liquidity provided by financially constrained intermediaries. We show that …