In the presence of macroeconomic shocks severe enough to threaten the liquidity or solvency of the banking system, the …

stability. Using a theoretical model, we show that a sudden increase in sovereign default risk may lead to liquidity issues in …This paper analyses the impact of different treatments of government bonds in bank liquidity regulation on financial … the banking sector, implying the insolvency of a significant number of banks. Liquidity requirements do not contribute to …

liquidity recovery. Using novel, micro data of the French banking system on the pool of collateral eligible to ECB open market … operations, we construct a "liquidity mismatch indicator (LMI)" for the aggregate banking sector that highlights the central bank … influence on the bank liquidity condition. Our results show that central bank liquidity and haircut policies have indeed helped …

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 analyze how the Lehman and sovereign crises affect cross-border interbank liquidity, exploiting euro … foreign lenders. Crisis shocks reduce the supply of cross-border liquidity, with stronger volume than pricing effects. On the … margin—riskier borrower banks suffer more. Moreover, the cross-border liquidity crunch is substantially stronger for term …

persistence of liquidity shocks. Following a theory of long-term interbank funding a financial system which is modeled as a micro … policy and therefore ultimately the real economy. In particular, it facilitates banks' liquidity management. This paper aims … at extending the literature which views interbank markets as mutual liquidity insurance mechanism by taking into account …

We develop a general equilibrium model of self-fulfilling bank runs in a setting without aggregate risk. The key … well as with the provision of emergency liquidity by central banks …

We develop a general equilibrium model of self-fulfilling bank runs in a setting without aggregate risk. The key … redemption penalties as well as with the provision of emergency liquidity by central banks …