We measure market reactions to announcements concerning liquidity regulation, a key innovation in the Basel framework …. Our initial results show that liquidity regulation attracts negative abnormal returns. However, the price responses are … consider liquidity regulation to be binding. Bank- and country-specific characteristics also matter. Liquid balance sheets and …

adopt a new short-term liquidity requirement, the liquidity coverage ratio (LCR), to promote greater liquidity resilience. U … understand this new liquidity metric …

Liquidity risk has received increased attention recently, especially in light of the 2007-2009 financial crisis, when … liquidity buffers made them quite susceptible to liquidity risk. To mitigate such risk, the Basel Committee on Banking … Supervision (BCBS) introduced an improved global capital framework and new global liquidity standards for banks in December 2010 …

Price-based liquidity metrics are better in 2013-2014 for small trades and large high-yield bond trades, but not for … relative to 2010-2012. This evidence contrasts with the widely-held view among practitioners that liquidity has worsened …-crisis liquidity could be low when markets are stressed. We consider three stress events: extreme VIX increases, extreme bond yield …

We examine liquidity creation per unit of assets by banks subject to the Liquidity Coverage Ratio (LCR) using the … liquidity measures Liquidity Mismatch Index (LMI) (Bai et al., 2018) and BB (Berger and Bouwman, 2009). We identify the LCR …. We find that, since 2013, there has been reduced liquidity creation by LCR banks compared to non-LCR banks, occurring …

We evaluate the effects of post-crisis liquidity regulation on the U.S. banking system. We find that regulated banks … have substantially improved their liquidity ratios by holding more liquidity buffers and terming out their liabilities …. However, some liquidity transformation has migrated to intermediaries not subject to liquidity regulation, such as small banks …

We employ a proprietary transaction-level dataset in Germany to examine how capital requirements affect the liquidity … gap - aggregate liquidity declines. Our results are stronger for banks with a higher capital shortfall, for noninvestment …

We investigate the effects that mutual fund liquidity requirements have on fragility. Starting in 2018, SEC Rule 22e-4 … illiquid securities face higher costs due to a smaller investor pool. However, higher liquidity does not ameliorate adverse … shocks. Facing outflows, funds maintain cash levels and sell illiquid securities. This is because liquidity requirements are …