Liquidity shocks are a core risk of the business model of commercial banks, which is founded on a liquidity mismatch … banks alone, this article turns to examine three regulatory strategies for reducing the incidence of liquidity shocks or … making banks more resilient to them. They are: regulating the level of banks' liquidity reserves, insuring the value of the …

This paper examines whether banks' liquidity and maturity mismatch decisions are affected by the choices of competitors … and the impact of these coordinated funding liquidity policies on financial stability. Using a novel identification … strategy where interactions are structured through decision networks, I show that banks do consider their peers' liquidity …

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

monetary policy operations. In turn, Greek banks turned to Emergency Liquidity Assistance (ELA) to meet their funding needs …

We examine the effect of liquidity imbalances on liquidity risk using 224 bank exits from interbank markets between … liquidity, especially when net placers exit an interbank market. Moreover, we also show that banks try to improve their position … by selling the most liquid assets, which due to the limited capital on the market leads to a liquidity crunch. Finally …

liquidity tightened after the Lehman collapse but there is no evidence of fire sales in the German banking sector. Instead, we … observe a broad-based flight to liquidity. The European Central Bank's unconventional monetary policy had a strong impact on … banks' trading behavior by inducing shifts towards eligible securities and reducing pressure on market liquidity. This …

engage in fractional reserve banking and they do not perform liquidity creation. Money market funds, like other capital …