This article analyzes the determinants of liquidity crises based on the dynamics of banking and finance under Knightian … financial instability derived from Keynes's theory of liquidity and expectations. Conventional expectations allow overcoming … uncertainty via the liquidity of secondary markets and, in turn, of banks' liabilities that are accepted as money. However, the …

This paper investigates the determinants of liquidity crises based on the dynamics of banking and finance under … endogenous financial instability derived from Keynes's theory of liquidity and expectations. Conventional expectations allow … overcoming uncertainty via the liquidity of secondary markets and, in turn, of banks' liabilities that are accepted as money …

regulatory liquidity requirements on bank behavior. A multi-stage decision situation allows for considering the interaction … between credit risk and liquidity risk of banks. This interaction is found to make a risk neutral bank behave as if it were … risk averse in an environment where there is no interbank market and liquidity regulation. Introducing a buoyant interbank …

This study investigates spillover effects of banks' liquidity risk control on the real economy by using the … introduction of the Basel III liquidity regulation as shocks to banks. Since the Basel Committee's endorsement of this regulation … in 2010, banks exposed to high liquidity risk have significantly reduced the proportion of loans in their portfolio. In …

generated by the firm but borne by society. Recent advances in measuring liquidity creation (Berger and Bouwman, 2009) and … that CEO pay-performance incentives reduce both positive liquidity creation externalities and negative systemic risk … externalities, while pay-risk incentives increase both externalities. Our findings infer a tradeoff for bank regulators …

The article deals with the liquidity risk in the banks in the context of the financial crisis. At first, the balance … sheet and market liquidity are defined and the main principles of the methods for measuring liquidity risk, which banks use …, are identified. Then follow review of main challenges of managing the liquidity of banks. Finally, it discusses …

Alongside other non-bank financial intermediaries, open-ended funds that invest in bonds ("bond OEFs") have grown … dealing with large investor redemptions in the presence of liquidity mismatches. Their tools notwithstanding, bond OEFs had to … liquidate assets on an elevated scale, thus collectively adding to bond market pressures. Without central bank interventions …

This paper contributes to the debate on liquidity in resolution by providing a quantitative assessment of liquidity … gaps of banks in resolution in the euro area. It estimates possible ranges of liquidity gaps for significant banks under … different assumptions and scenarios. The findings suggest that, while the average liquidity gaps in resolution are limited, the …

This paper contributes to the debate on liquidity in resolution by providing a quantitative assessment of liquidity … gaps of banks in resolution in the euro area. It estimates possible ranges of liquidity gaps for significant banks under … different assumptions and scenarios. The findings suggest that, while the average liquidity gaps in resolution are limited, the …

because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy … laissez-faire are inefficient and involve excessive borrowing, with default risks that jeopardize the purported liquidity …