distorted the choices of financial intermediaries ex-ante (inducing them to rely too much and too quickly on liquidity for …

decrease a bank's incentive to take risk with its remaining ineligible assets. A greater capacity to respond to liquidity … illiquidity disadvantages of holding risky assets. We then empirically estimate the effect of two liquidity regulations on bank … stress increases the potential profits a bank would put at stake by making risky investments, but it also mitigates the …

We estimate the volume of liquidity creation by U.S. bank holding companies between 1997 and 2015, and examine the … quantitative easing, and the Troubled Asset Relief Program (TARP). The dynamics of bank liquidity creation differ considerably … occurring in the aftermath of the 2007-2009 financial crisis: bank capital regulation reform, monetary stimulus through …

the ongoing substitution between securities and bank lending as the main financing channel of non-financial firms …

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 …

Whether and to what extent tougher bank regulation weighs on economic growth is an open empirical question. Using data … from 28 manufacturing industries in 50 countries, we explore the extent to which cross-country differences in bank … liquidity and capital levels were related to differences in sectoral activity around the period of the global financial crisis …

' investment in complex assets. Complexity improves bank liquidity in good times but heightens vulnerability to runs during crises …We introduce a general equilibrium model to analyze the interactions between liquidity regulations and banks …. Banks underinvest in complex assets when liquidity regulations are loose and overinvest when liquidity regulations are tight …