We investigate the consequences of banks' liquidity hoarding behavior for the stability of the financial system … role of liquidity hoarding in the 2007-2009 financial crisis, we incorporate banks' hoarding behavior in a standard … potential solvency contagion, a market shock leads to banks' liquidity hoarding that may generate problems of short-term funding …

, holding intermediaries' debt as cash. This paper shows that intermediaries' liquidity creation stimulates growth -- firms hold …. Introducing government debt as a competing source of liquidity is a double-edged sword: firms hold more liquidity in every state … of the world, but by squeezing intermediaries' profits and amplifying their leverage cycle, public liquidity increases …

's funding liquidity, boosting credit supply to nonbanks. However, diversification comes at an endogenous cost that depends on …Some stylized facts about transactions among banks are not easily reconciled with coinsurance of short-term liquidity … risks. In our model, interbank markets play a different role. We argue that lending to another bank can reduce a bank …

While regulatory capital buffers are expected to be drawn to absorb losses and meet credit demand during crises, this …-cyclical behaviour to preserve capital ratios. By employing granular data from the credit register of the European System of Central … Banks, we isolate credit supply effects and find that banks with little headroom above regulatory buffers reduced their …

reduce bank returns and tighten credit conditions for borrowers, constraining investment and growth. The effects are larger …We study the transmission of financial shocks across borders through international bank connections. Using data on … countries experiencing systemic banking crises on profitability, credit, and the performance of borrower firms. Crisis exposures …

banks' core function in normal times captured by bank lending and liquidity creation. All estimates are robust across …The study examines the bank-specific determinants of sovereign bond holdings and how such holdings affect bank lending … regression techniques for both dynamic and static models, we attribute the motives of sovereign bond holdings to the liquidity …

Bank focused how to increase profit. But, sustainability of growth is more important. This study examines the effect of … liquidity and asset quality on sustainable growth rate in banking sector. Purposive sampling based on the criteria selected 23 … banks in 2010-2017 period with 174 observations. Using panel data regression, the results showed that liquidity and bad …

We use supervisory loan-level data to document that small firms (SMEs) obtain shorter maturity credit lines than large … bolstered their liquidity and alleviated the shortfall …