that banks respond to a negative funding liquidity shock in a number of ways. First, banks reduce lending, especially … wholesale lending. Second, banks hoard liquidity in the form of liquid bonds and central bank reserves. Third, banks conduct …The crisis of 2007-2009 has shown that financial market turbulence can lead to huge funding liquidity problems for …

We show that a liquidity shock can affect the solvency of a bank and cause its default if the bank does not hold enough … over one and two (short) periods relative to the liquidity risk and, more particularly, to liquidity shock scenarios on an … individual bank. These shock scenarios are materialized by different net demands for withdrawal of funds (NDWF) - which are not …

We consider the liquidity shock banks experienced following the collapse of the asset-backed commercial paper market in … that liquidity shock passed a larger portion of their borrowing costs onto corporations seeking access to liquidity in the … the fall of 2007 to investigate whether banks' liquidity condition affect their ability to provide liquidity to …

We study how banks' capital level affects the extent to which they engage in liquidity transformation. We first … using a confidential Bank of England dataset that includes arguably exogenous changes in banks' capital requirement add …-ons. We find that banks engage in less liquidity transformation when their capital increases, which suggests that capital and …

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 …

measure the managing of liquidity. While Bank liquidity was affected by the crisis, bank performance remained relatively …The aim of this paper is to analyze the liquidity levels of various banks in the UAE for the period 2005-2009. To … understand the behavior of liquidity indicators especially during the financial crisis, the researcher will analyze the four …

I study how liquidity information influences banks' liquidity holdings, using the disclosure of bank liquidity coverage … information on banks' strategic interactions in holding liquidity. I use bank network relationships to measure how much a bank … ratio (LCR) mandated for a group of large US banks. While the disclosure rule aims to increase liquidity in the banking …

We document that banks facilitate liquidity provision to their affiliated mutual funds that experience excessive … withdrawals. The liquidity support, which mainly originates from institutional and retail clients of banks, limits the negative … performance effects of financial distress and mitigates strategic complementarities. Parent bank flows during distress periods …