In addition to revamping existing rules for bank capital, Basel III introduces a new global framework for liquidity … on loans of one of these assets - central bank reserves - it is important to understand how this regulation may impact …

cannot completely remove the need for Lender of Last Resort (LOLR) interventions by the central bank. Full compliance with …

regulation may interfere with the central bank's influence on short-term money market rates. This paper tries to fill the gap in … understanding the interaction between the money market, the central bank, and the regulator. Importantly, it shows that the … existence of a central bank can be welfare-improving when the market equilibrium is driven by collateral constraints and …

LCR considers only a subset of central bank eligible assets and thereby offers banks an arbitrage opportunity to improve … their regulatory ratio by altering their collateral pledging with the European Central Bank. We use the existence of … national liquidity requirements to proxy for banks' incentives to exploit this differential treatment of central bank eligible …

We integrate banks and the coexistence of bank and bond financing into an otherwise standard New Keynesian framework … moderate bank credit cycles, and to induce a more efficient allocation of resources across sectors. Moreover, we investigate … that the central bank should focus exclusively on price stability and the macroprudential policy-maker should react …