for banks. Bank lending behavior responds significantly to reserve requirements and liquidity positions. Our analysis … allows us to identify a new channel that we name as the "liquidity channel". The channel works through a decline in bank … liquidity and loan supply due to an increase in reserve requirements. …

reserve requirement policy with bank lending. We identify a new channel that works through a decline in bank liquidity and … affect the funding needs and the liquidity position of the banking system. The consequent changes in bank liquidity have a …