This paper analyzes a government's incentives to provide fi nancial assistance to a public bank which is hit by a … liquidity shock. We show that discretionary decisions about emergency liquidity assistance result in either excessively small or … excessively large liquidity injections in a wide variety of circumstances. Also, adding a lender of last resort does not generally …

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 investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a … liquidity regulation. For causal inference, we use a regression kink design that relies on the variation in a marginal high … credit supply. Liquidity requirements also depress banks' profitability, though some of the regulatory costs are passed on to …

Bank liquidity shortages during the global financial crisis of 2007-2009 led to the introduction of liquidity … impact of liquidity regulation on bank lending. As a setting, we use the Netherlands, where a Liquidity Balance Rule (LBR …-in-differences approach, we find that stricter liquidity requirements did not reduce the lending of Dutch banks relative to other banks not …

This paper investigates the costs and benefi ts of liquidity regulation. We find that liquidity tools are bene ficial … but cannot completely remove the need for Lender of Last Resort (LOLR) interventions by the central bank. Full compliance … with current Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) rules would have reduced banks' reliance on …

consider liquidity regulation to be binding. Bank- and country-specific characteristics also matter. Liquid balance sheets and …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 …

This paper provides a baseline model for regulatory analysis of systemic liquidity shocks. We show that banks may have … allocation is inferior from the investor's point of view since some banks free ride on the liquidity provision due to their … combination of liquidity regulation ex ante and lender of last resort policy ex post can maximize investor payoff. In contrast …

This paper investigates the costs and benefits of liquidity regulation. We find that liquidity tools are beneficial but … cannot completely remove the need for Lender of Last Resort (LOLR) interventions by the central bank. Full compliance with … current Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) rules would have reduced banks' reliance on …

This paper discusses liquidity regulation when short-term funding enables credit growth but generates negative systemic … containing risk and preserving credit quality, while quantity-based fundingratios are distorsionary. Liquidity buffers are either … overconfidence), excess credit and liquidity risk are best controlled with net fundingratios. Taxes on short-term funding emerge …

regulatory liquidity requirements on bank behavior. A multi-stage decision situation allows for considering the interaction … between credit risk and liquidity risk of banks. This interaction is found to make a risk neutral bank behave as if it were … risk averse in an environment where there is no interbank market and liquidity regulation. Introducing a buoyant interbank …