of idiosyncratic liquidity shocks - arising from deposits outflow at the bank level - and of the aggregate liquidity … during idiosyncratic liquidity shocks, while central bank liquidity contributes to smooth the impact of aggregate liquidity …

heterogeneous patterns in the interest rates paid to borrow unsecured funds once bank size and other bank and market factors that …, but the economic size of the effect is small. Bank reputation and perceived credit riskiness are the most relevant factors … “punishment”, which possibly reflects market discipline. Bank reputation becomes even more important. (3) After Lehman …

and the optimal policy of a central bank in response to both idiosyncratic and aggregate shocks. In particular, we … consider how the interbank market affects a bank's choice between holding liquid assets ex ante and acquiring such assets in … the market ex post. We show that a central bank should use different tools to manage different types of shocks …

We use a unique data set that comprises each bank’s bids in the Eurosystem’s main refinancing operations and its … that a bank’s willingness-to-pay is a good indicator for the probability that this bank draws on the LOLR facility. Our …