The paper reports the outcome of the stress-testing of liquidity risk in the TARGET2 payment system, with the study … resilience of the system, defined as the network of its participants, and the appropriateness of liquidity levels under tightened … liquidity conditions. The scenarios analysed are based on extreme shocks to the value of collateral of different levels and …

banks in resolution. It examines the provision of liquidity in the United States, the United Kingdom, Japan, Canada and the …-level guarantee framework – which would allow access to Eurosystem liquidity for banks coming out of resolution with limited … regimes that seek to limit the use of taxpayer money while maintaining the functions of failing banks that are critical for …

We study the design of lender of last resort interventions and show that the provision of long-term liquidity … incentivizes purchases of high-yield short-term securities by banks. Using a unique security-level data set, we find that the … European Central Bank's three-year Long-Term Refinancing Operation incentivized Portuguese banks to purchase short …

, involving all national central banks (NCBs), usefully contribute to the regular processing of a vast amount of economic …

countries are stuck in persistent stagnation. In the post recovery situation, central banks could ultimately revert to targeting … due to new liquidity requirements. The transition to this situation will be lengthy and will require a mixture of … liquidity draining instruments. Alternatively, they could adopt a floor system, which may benefit financial stability. The use …

consideration banks' prudential behavior over the financial cycle as well as cyclical risks in the banking sector. In this paper, we … new set of indicators that largely capture the risk of cyclicality of profit and loan loss provisions. We argue that banks …