) system. A pure RTGS system typically requires participants to hold large amounts of intraday liquidity in order to settle … their payment obligations. Implementing one or more liquidity-saving mechanisms (LSMs) can reduce the amount of liquidity … participants need to hold. This paper investigates how much liquidity requirements can be reduced with the implementation of …

We investigate whether idiosyncratic interbank funding shocks affecting a bank headquarters can trigger a liquidity … emergency liquidity. Our findings suggest that the geographical fragmentation of branches' funding limits their ability to …

firesale spirals. The central bank injects or withdraws liquidity on the interbank markets to achieve its desired interest rate … detrimental effects of higher risk taking incentives.We find that central bank supply of liquidity quite generally increases …

German banking sector and interbank market. It shows that banks use the interbank market for liquidity co-insurance as … traditionally assumed. However, the importance of the liquidity management function is higher for regionally-focused credit … the need to extend the traditional model of liquidity co-insurance …

modelling framework could be used both as a crisis management tool to help inform decisions on capital/liquidity infusions in …