-specific risks during the crisis. The regression results suggest that counter-party credit risk increased the difference across the … markets, while liquidity risk caused the difference across the currency denominations. They also support the view that a … central bank liquidity provisions were useful in reducing liquidity risk in the US dollar transactions. But their …

-specific risks during the crisis. The regression results suggest that counter-party credit risk increased the difference across the … markets, while liquidity risk caused the difference across the currency denominations. They also support the view that a … central bank liquidity provisions were useful in reducing liquidity risk in the US dollar transactions. But their …

, when counterparty risk poses systemic risk to the interbank market, the central bank should focus on providing interbank …

on systemic risk. Banks choose their portfolio, including their borrowing and lending decisions on the interbank market …, to maximize profit subject to regulatory constraints in an asset-liability framework. Systemic risk arises in the form of … detrimental effects of higher risk taking incentives.We find that central bank supply of liquidity quite generally increases …