We study liquidity transfers between banks through the interbank borrowing and asset sale markets when, (i) surplus …) compared to outside markets, or is prepared to extend potentially loss-making loans. The public provision of liquidity to banks …, in fact its mere credibility, can thus improve the private allocation of liquidity among banks. This rationale for …

central bank's liquidity policy. In October 2011, to encourage interbank trading, banks were allotted quotas for their … market operations to counteract not only temporary liquidity shortfalls, but also surpluses. We document substantially higher …

This paper aims to shed light on the systemic nature of liquidity risk and to propose a method for calculating systemic … liquidity shortages. Our method incorporates not only direct liquidity shortages but also indirect liquidity shortages due to … a deficit bank can mitigate a liquidity shortage by holding more claims on a surplus bank. Meanwhile, a greater …

This paper aims to shed light on the systemic nature of liquidity risk and to propose a method for calculating systemic … liquidity shortages. Our method incorporates not only direct liquidity shortages but also indirect liquidity shortages due to … a deficit bank can mitigate a liquidity shortage by holding more claims on a surplus bank. Meanwhile, a greater …

incorporate credit and liquidity risks. Indeed, a bank that lends on the unsecured market requires compensations for facing (a … us to decompose the whole term structure of spreads into credit and liquidity components. Our no-arbitrage econometric … recent easing in the euro interbank market comes from a decrease in liquidity-related risk premia …

In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the … concentration of credit relationships and the position of a bank in the network topology of the system influence the bank's ability … to meet its liquidity demand. We use quarterly data of bilateral interbank credit exposures between all German banks from …

-wide liquidity crunches, as if the interactions are centralized. Local insolvency shocks trigger the interbank run if the network is …I study how interbank lending network structures affect financial fragility. Interbank lending is beneficial but … reinforce each other to withdraw interbank lending. Banks' individually precautionary liquidity hoarding strategies are …