that banks respond to a negative funding liquidity shock in a number of ways. First, banks reduce lending, especially … wholesale lending. Second, banks hoard liquidity in the form of liquid bonds and central bank reserves. Third, banks conduct …The crisis of 2007-2009 has shown that financial market turbulence can lead to huge funding liquidity problems for …

We consider the liquidity shock banks experienced following the collapse of the asset-backed commercial paper market in … that liquidity shock passed a larger portion of their borrowing costs onto corporations seeking access to liquidity in the … the fall of 2007 to investigate whether banks' liquidity condition affect their ability to provide liquidity to …

We study how banks' capital level affects the extent to which they engage in liquidity transformation. We first … using a confidential Bank of England dataset that includes arguably exogenous changes in banks' capital requirement add …-ons. We find that banks engage in less liquidity transformation when their capital increases, which suggests that capital and …

I study how liquidity information influences banks' liquidity holdings, using the disclosure of bank liquidity coverage … information on banks' strategic interactions in holding liquidity. I use bank network relationships to measure how much a bank … ratio (LCR) mandated for a group of large US banks. While the disclosure rule aims to increase liquidity in the banking …

of idiosyncratic liquidity shocks - arising from deposits outflow at the bank level - and of the aggregate liquidity … shock related to the U.S. tapering observed between May and September of 2013. We find that both liquidity shocks are … during idiosyncratic liquidity shocks, while central bank liquidity contributes to smooth the impact of aggregate liquidity …

. Liquidity stress tests have been applied in parallel to and independently from solvency stress tests, based on scenarios which … testing of solvency and liquidity: our approach exploits the mechanisms underlying the solvency-liquidity nexus to derive … relations between solvency shocks and liquidity shocks. These relations are then used to model liquidity and solvency risk in a …