optimally tilt their government bond portfolio toward domestic securities, linking their destiny to that of the sovereign. If …

, the availability of high quality collateral suitable for encumbrance, capital and sovereign funding conditions. Third, we …

the credit risk of their corporate loan portfolios when the latter are used as collateral in the Eurosystem's monetary … actually used as Eurosystem collateral, particularly for large loans. The less conservative estimates of risk by IRBs relative … findings suggest the existence of a collateral-related channel through which the use of IRB ratings may influence the internal …

We build a macro-finance model of shadow banking: the transformation of risky assets into securities that are money …-like in quiet times but become illiquid when uncertainty spikes. Shadow banking economizes on scarce collateral, expanding …-banking spreads, forcing the financial sector to switch to collateral-intensive funding. Shadow banking collapses, liquidity provision …

The paper studies the central bank collateral framework and its impact on banks' liquidity under an adverse stress test … significantly after the initial shock. We find evidence of a threshold in the benefits of expanding the collateral framework and … institutions can rely on the collateral framework channel. …

The paper studies the central bank collateral framework and its impact on banks’ liquidity under an adverse stress test … significantly after the initial shock. We find evidence of a threshold in the benefits of expanding the collateral framework and … institutions can rely on the collateral framework channel …