The paper studies relevance of the cross-sided externality between liquidity makers and takers from the two …-sided market perspective. We use exogenous changes in the make/take fee structure, minimum tick-size and technology for liquidity … suppliers and demanders, as experiments to identify cross-sided complementarities between liquidity suppliers and demanders in …

We consider a model of liquidity demand arising from a possible maturity mismatch between asset revenues and … consumption. This liquidity demand can be met with either cash reserves (inside liquidity) or via asset sales for cash (outside … liquidity). The question we address is, what determines the mix of inside and outside liquidity in equilibrium? An important …

Banks can fail either because they are insolvent or because an aggregate shortage of liquidity can render them … insolvent. We show that bank failures can themselves cause liquidity shortages. The failure of some banks can then lead to a … links between banks but because bank failure could lead to a contraction in the common pool of liquidity. There is a …

Both investors and borrowers are concerned about liquidity. Investors desire liquidity because they are uncertain about … when they will want to eliminate their holding of a financial asset. Borrowers are concerned about liquidity because they … compensation for the illiquidity investors will be subject to. We argue that banks can resolve these liquidity problems that arise …

Banks are unique among financial institutions because they are the cheapest source of liquidity in the economy. Banks … liquidity. Since the cost of reserves falls on all issuers of less liquid liabilities seeking access to payment services …

This paper investigates the relationship between credit risk and liquidity risk, based on the potential interdependence … between liquid asset ratio and non-performing loans ratio, as well as systemic liquidity risk. The data used cover the period … increases, with or without systemic liquidity risk, and consequently that liquidity risk increases as credit risk increases, and …

I use a fuzzy regression discontinuity design to study the impact of auction-based emergency liquidity at the onset of … auction-based liquidity's funding structure through the discount window. They highlight that banks would have relied …

constraints due to limited pledgeability of their returns. Monetary policy affects the liquidity premium on private credit and … economies with private credit instruments. If we consider a richer set of aggregate liquidity management instruments, such as …