This study investigates spillover effects of banks' liquidity risk control on the real economy by using the … introduction of the Basel III liquidity regulation as shocks to banks. Since the Basel Committee's endorsement of this regulation … in 2010, banks exposed to high liquidity risk have significantly reduced the proportion of loans in their portfolio. In …

generated by the firm but borne by society. Recent advances in measuring liquidity creation (Berger and Bouwman, 2009) and … that CEO pay-performance incentives reduce both positive liquidity creation externalities and negative systemic risk … externalities, while pay-risk incentives increase both externalities. Our findings infer a tradeoff for bank regulators …

Global liquidity flows are largely channeled through banks and nonbank financial institutions. The common drivers of … global liquidity flows include monetary policy in advanced economies and risk conditions. At the same time, the sensitivities … of liquidity flows to changes in these drivers differ across institutions and have been evolving over time …

The article deals with the liquidity risk in the banks in the context of the financial crisis. At first, the balance … sheet and market liquidity are defined and the main principles of the methods for measuring liquidity risk, which banks use …, are identified. Then follow review of main challenges of managing the liquidity of banks. Finally, it discusses …

liquidity provision and the roles of the public budget and the central bank. The comparison also reveals that the role of fiscal … financial stability. This paper extends the existing research by zooming in on the specific topic of liquidity provision to … banks in resolution. It examines the provision of liquidity in the United States, the United Kingdom, Japan, Canada and the …

Alongside other non-bank financial intermediaries, open-ended funds that invest in bonds ("bond OEFs") have grown … dealing with large investor redemptions in the presence of liquidity mismatches. Their tools notwithstanding, bond OEFs had to … liquidate assets on an elevated scale, thus collectively adding to bond market pressures. Without central bank interventions …

Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence … and prevent bank runs. However, as the experiences of some European countries, most notably Ireland, have demonstrated … rollover risks of a bank and a government, which are connected through the government's guarantee of bank liabilities. We show …

This paper contributes to the debate on liquidity in resolution by providing a quantitative assessment of liquidity … gaps of banks in resolution in the euro area. It estimates possible ranges of liquidity gaps for significant banks under … different assumptions and scenarios. The findings suggest that, while the average liquidity gaps in resolution are limited, the …

This paper analyses the impact of different treatments of government bonds in bank liquidity regulation on financial … stability. Using a theoretical model, we show that a sudden increase in sovereign default risk may lead to liquidity issues in … the banking sector, implying the insolvency of a significant number of banks. Liquidity requirements do not contribute to …