the monetary policy and financial regulation and supervision perspectives. In the preceding SUERF Study (2013/2), the …

the monetary policy and financial regulation and supervision perspectives. In the preceding SUERF Study (2013/2), the …

to liquidity assistance as a solution to forbearance. Faced with a bank that chooses capital and liquidity, the … institution providing liquidity assistance can commit to a mixed strategy: never bailing out is too costly and therefore not … credible, while always bailing out causes moral hazard. In equilibrium, the bank chooses above minimum capital and liquidity …

constrained efficient when supplemented with the same government liquidity regulation that is required to make a banking system …I revisit the Diamond-Dybvig model of liquidity insurance in the presence of hidden trades. The key result is that in … this environment deposit-taking banks are not necessary for the efficient provision of liquidity. Mutual funds are …

We investigate two competing explanations for commercial bank distress during financial crises: liquidity shortages and … solvency concerns. If liquidity shortages cause distress, a lender of last resort can help by providing funds to banks having … banks with existing solvency problems, then liquidity provision may not spur lending. Our analysis of commercial banks shows …

We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment … banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We …

premature to conclude that 'Too Big to Fail" has been solved, but macro-prudential regulation is now much more effective and …

generates bank equity and credit supply volatility. Then, a DSGE model with key financial frictions and a banking sector is … capital regulation, (iii) they mainly operate through their cyclical component, ensuring that long-run dividend payouts remain …