We study how banks manage their liquidity among the various assets at their disposal. We exploit the introduction of … assets over time. Our results imply that frictions in one market for liquidity can spill over to several markets. …

We develop a model in which financial intermediaries hold liquidity to protect themselves from shocks. Depending on … parameter values, banks may choose to hold too much or too little liquidity on aggregate compared with the socially optimal … underinsurance against liquidity choice. The model therefore provides a unified framework for thinking, on the one hand, about policy …

We study the interbank lending and asset sales markets in which banks with surplus liquidity have market power …

liquidity and operate the payments system. Reform advocates noted that banking panics tended to occur at times of the year when … national banks were much less dependent on correspondent banks for seasonal liquidity and that peaks in lending by individual … Reserve Banks aligned with the liquidity needs of banks in their districts. Further, the article shows that after the Fedâ …

This paper investigates the impact of ample liquidity provision by the European Central Bank on the functioning of the … main euro area payment system. To identify exogenous shocks to central bank liquidity, we exploit the timing of ECB … liquidity operations and use a simple structural vector auto-regression framework. We argue that the ECB acted as a de …

We examine the system-wide effects of liquidity regulation on banks’ balance sheets. In the general equilibrium model … value before maturity, e.g., structured securities. By improving the liquidity of interbank markets, tighter liquidity … requirements induce banks to invest in such complex assets. We evaluate the welfare properties of combining liquidity regulation …

This paper investigates the impact of ample liquidity provision by the European Central Bank on the functioning of the … main euro area payment system. To identify exogenous shocks to central bank liquidity, we exploit the timing of ECB … liquidity operations and use a simple structural vector auto-regression framework. We argue that the ECB acted as a de …

on financial markets and the wider economy. They can, for example, bias the private provision of real liquidity and …

Repo is used in India as an instrument for monetary policy by institutionalizing daily Liquidity Adjustment Facility … (LAF) which allows banks and Primary Dealers to manage their liquidity needs. Liquidity stress in the market has an impact …-bank uncollateralized call market and the call rates are prone to liquidity shocks in the system. The spread between Call and Repo rates is …