Liquidity risk in banking has been attributed to transactions deposits and their potential to spark runs or panics. We … show instead that transactions deposits help banks hedge liquidity risk from unused loan commitments. Bank stock …. This deposit-lending risk management synergy becomes more powerful during periods of tight liquidity, when nervous …

Liquidity risk in banking has been attributed to transactions deposits and their potential to spark runs or panics. We … show instead that transactions deposits help banks hedge liquidity risk from unused loan commitments. Bank stock …. This deposit-lending risk management synergy becomes more powerful during periods of tight liquidity, when nervous …

Global liquidity refers to the volumes of financial flows—largely intermediated through global banks and non … provides policy-relevant lessons. International spillovers of monetary policy and risk sentiment through global liquidity … liquidity provision. Strong prudential policies in the home countries of global banks and official facilities reduce funding …

effectiveness to manage excess volatility and to preserve liquidity. Specifically, we empirically analyze volatility and liquidity …. Unfortunately, this decrease in volatility comes at the cost of decreased liquidity. Regarding design parameters, we find tighter …