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The past two decades have seen the construction of a tiered system of international liquidity provision, the first tier …
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This paper delves into the relationship between the issu-ance of Central Bank Digital Currencies (CBDC) and the likelihoodof banking panic. The issuance of CBDC acts as a disturbing shockthat incentivizes depositors to withdraw all/part of their depositsfrom the commercial banks, to swap it for...
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dependent on banks' solvency and liquidity exposures. Our results highlight that it is necessary to take heterogeneity of …
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The search for a market design that ensures stable bank funding is at the top of regulators' policy agenda. This paper empirically shows that the central counterparty (CCP)-based euro interbank repo market features this stability. Using a unique and comprehensive data set, we show that the...
Persistent link: https://www.econbiz.de/10010410308
One of the core functions of a central bank is to provide liquidity insurance, often termed the lender of last resort … (LLR) function. During and after the Great Financial Crisis (GFC) in 2007-09 central banks' role as liquidity insurers … evolved. In the aftermath of the crisis, regulation of liquidity risk in the financial sector has been tightened, and central …
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This paper investigates the relationship between credit and liquidity risk components in the UK interbank spread during … risk was a major factor in the widening of the spread and also caused a rise in liquidity risk. However, this relationship … central bank's liquidity provisions, we provide evidence that the QE operations were successful in reducing liquidity premia …
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