This paper studies 'Stylised Facts' and 'Determinants' of short-and long-term CDS-spreads of banks. As short …

‘Safe harbour’ is shorthand for a bundle of privileges in insolvency which are typically afforded to financial … protection against the fallout of the counterparty’s insolvency contributes to systemic stability, as the feared ‘domino effect … argument for the existence of safe harbours is liquidity in the financial market. Safe harbour rules do away with a number of …

We show that U.S. banks do not engage in zombie lending to firms of deteriorating profitability, irrespective of … for banks and nonbanks, and an empirical setting with quasirandom shocks to firm profitability. Although credit migrates … from banks to nonbanks, zombie firms file for bankruptcy at an elevated rate, suggesting that nonbanks' zombie lending does …

This paper explains the emergence of liquidity traps in the aftermath of large-scale financial crises, as happened in … long time. -- liquidity trap ; financial crisis ; rare disasters ; equity capital ; leverage ; bankruptcy risk …

Since the outset of the recent financial crisis, liquidity problems have been cited as the cause behind the … role for bankruptcy as a provider of liquidity. The Creditors' Bargain theory argues that bankruptcy law should be limited …-in-possession financing, sales free and clear of liens, and coerced loans can be seen as liquidity-providing rules that target either debt …

emergency liquidity and lending we introduce an instrumental variable, responsible for available emergency liquidity, into the … account for emergency liquidity (ELA) presence. We showed that given the limited amount of relevant historical data, ignoring …