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-term resilience. We investigate the effects of such liquidity regulation on bank liquid assets and liabilities. Results indicate co …Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short …-integration of liquid assets and liabilities, to maintain a minimum short-term liquidity buffer. Still, microprudential regulation …
Persistent link: https://www.econbiz.de/10010240057
In the presence of macroeconomic shocks severe enough to threaten the liquidity or solvency of the banking system, the …
Persistent link: https://www.econbiz.de/10011400865
theoretical models' predictions of a trade-off between liquidity buffers and bank opacity that exacerbates funding liquidity risk …We evaluate how the liquidity coverage rule affects US banks' opacity and funding liquidity risk. Banks subject to the … rule become significantly more opaque and funding liquidity risk increases by $245 million per quarter. Higher funding …
Persistent link: https://www.econbiz.de/10013403561
firm incentives in a post-reform financial system. -- Financial regulatory reform ; corporate governance ; bank charter … ; bank insolvency …
Persistent link: https://www.econbiz.de/10008657240
mechanisms and capital regulations are the determinants of the bank performance …
Persistent link: https://www.econbiz.de/10014155156
During the Great Recession, liquidity did not flow out of the banking sector but transferred internally. Deposits …, which have stable funding sources from deposits, did not render liquidity backup to shadow banks but held the increased … provide evidence that when liquidity falls in shadow banks, commercial banks experience funding inflows. In normal times …
Persistent link: https://www.econbiz.de/10012872057
The convention in calculating trading costs in corporate bond markets is to assume that dealers provide liquidity to … provide liquidity in corporate bond markets, and thus, average bid-ask spreads underestimate trading costs that customers … demanding liquidity pay. Compared with periods before the 2008 financial crisis, substantial amounts of liquidity provision have …
Persistent link: https://www.econbiz.de/10011803677
liquidity creation, the most comprehensive measure of bank output. We find support for the empirical dominance of the synergies … view over the scope diseconomies view. Additional powers boost commercial bank liquidity creation in the same country, and …We investigate the effects of bank powers – regulatory permissions to engage in nontraditional activities – on …
Persistent link: https://www.econbiz.de/10013309451
as to provide liquidity and risk-sharing services to the real economy. Our modifications create wedges in the asset and … joint implementation of a capital and a liquidity regulation …
Persistent link: https://www.econbiz.de/10011803125
chapter reviews and synthesizes the theoretical and empirical literature on bank liquidity creation. The focus is on the … economics of bank liquidity creation, both in the traditional relationship banking context and in the shadow banking context …Liquidity creation is a core function of banks and an economic service of substantial importance to the economy. This …
Persistent link: https://www.econbiz.de/10013078020