This paper contributes to the debate on liquidity in resolution by providing a quantitative assessment of liquidity … gaps of banks in resolution in the euro area. It estimates possible ranges of liquidity gaps for significant banks under … different assumptions and scenarios. The findings suggest that, while the average liquidity gaps in resolution are limited, the …

We evaluate how the liquidity coverage rule affects US banks' opacity and funding liquidity risk. Banks subject to the … rule become significantly more opaque and funding liquidity risk increases by $245 million per quarter. Higher funding … liquidity risk is more pronounced among banks that are subject to the rule's more stringent liquidity buffers, and systemically …

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 … constrained efficient when supplemented with the same government liquidity regulation that is required to make a banking system …

We evaluate the effects of post-crisis liquidity regulation on the U.S. banking system. We find that regulated banks … have substantially improved their liquidity ratios by holding more liquidity buffers and terming out their liabilities …. However, some liquidity transformation has migrated to intermediaries not subject to liquidity regulation, such as small banks …

Can banks maintain their advantage as liquidity providers when exposed to a financial crisis? While banks honored their … credit lines drawn by firms during the 2007-09 crisis, this provision of liquidity by banks was only possible because of …

Can banks maintain their advantage as liquidity providers when exposed to a financial crisis? While banks honored their … credit lines drawn by firms during the 2007-09 crisis, this provision of liquidity by banks was only possible because of …

Can banks maintain their advantage as liquidity providers when exposed to a financial crisis? While banks honored their … credit lines drawn by firms during the 2007-09 crisis, this provision of liquidity by banks was only possible because of …

as to provide liquidity and risk-sharing services to the real economy. Our modifications create wedges in the asset and … joint implementation of a capital and a liquidity regulation …

We propose a novel theory of banks' liquidity management and financial fragility. Banks hold liquidity and an illiquid … depositors are sufficiently risk averse, banks manage their liquidity needs during runs following an endogenous pecking order …: they first deplete liquidity, and then liquidate the productive asset. Thus, under these conditions banks subject to runs …