This paper studies how global banks transmit liquidity shocks via their internal capital markets. The unexpected access … as our liquidity shock. Using microdata on all affiliates abroad, we test whether affiliates located outside the US … actively managed internal capital markets and the increased centralization of global banks' liquidity management at the …

We propose a tractable, model-based stress-testing framework where the solvency risks, funding liquidity risks and … to illiquidity. Investors' pessimism over the quality of a bank's assets reduces the bank's recourse to liquidity, which …' recourse to liquidity. We illustrate these dynamics in a calibrated stress-testing exercise. …

probability and potential impact of contagion is influenced by aggregate and idiosyncratic shocks, changes in network structure …, and asset market liquidity. Our findings suggest that financial systems exhibit a robust-yet-fragile tendency: while the … resilience of the system in withstanding fairly large shocks prior to 2007 should not have been taken as a reliable guide to its …

explicitly takes into account the crisis state of the world. This allows us to model the network formation decision as optimising …

into consideration: random graphs, small world networks and scale free networks. These three network topologies are then … stress-tested under four different scenarios: a benchmark case of no liquidity risk and random attack, the case of liquidity …In this paper I assess the resilience of different network topologies to an exogenous shock for varying degrees of …

network. Systemic risk within the northern euro area banking system is less apparent, while the southern euro area banking …We investigate systemic risk and how financial contagion propagates within the euro area banking system by employing … the Maximum Entropy method. The study captures multiple snapshots of a dynamic financial network and uses counterfactual …

explicitly takes into account the crisis state of the world. This allows us to model the network formation decision as optimising …