in modern monetary and financial systems, namely central bank collateral frameworks. Their importance can be understood …, not defined in a market, but by the collateral frameworks and interest rate policies of central banks. Using the … collateral framework of the Eurosystem as a basis of illustration and case study, the paper brings to light the functioning …

national liquidity requirement pledge more and less liquid collateral than banks with a preceding national liquidity …We analyze the pledging behavior of Euro area banks during the introduction of the liquidity coverage ratio (LCR). The … their regulatory ratio by altering their collateral pledging with the European Central Bank. We use the existence of …

dependent on banks' solvency and liquidity exposures. Our results highlight that it is necessary to take heterogeneity of …

In this paper we introduce two measures, the Systemic Liquidity Buffer (SLB) and the Systemic Liquidity Shortfall (SLS …) to assess liquidity in the banking system. The SLB takes an aggregated perspective on liquidity risks in the banking … system. In contrast, the SLS focusses on the problematic banks which suffer a liquidity shortfall. These measures provide an …

This paper develops a debt-run model to study the effects of liquidity injections on debt markets in the presence of a … terms of debt. We show that when equityholders have a large bargaining power, liquidity injections into distressed firms can …

Despite much attention to unconventional monetary policies after the financial crisis, the collateral policies of … central banks are rarely discussed. And when they are, the haircuts applied to assets pledged to access central bank liquidity … tend not to be analyzed. An exception to these trends is the recent work by Nyborg (2017), who argues that the collateral …

We study how the subjective beliefs about loan repayment on the side of liquidity-constrained banks affect the central … bank's choice of collateral standards in its lending facilities. Optimism on the side of banks, entailing a higher … collateral value of bank loans, can lead to excessive lending and bank default. Pessimism, though, can entail insufficient …

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 …

national liquidity requirement pledge more and less liquid collateral than banks with a preceding national liquidity …We analyze the pledging behavior of Euro area banks during the introduction of the liquidity coverage ratio (LCR). The … their regulatory ratio by altering their collateral pledging with the European Central Bank. We use the existence of …