This paper examines the optimal design of and interaction between capital and liquidity regulations in a model … characterized by fire sale externalities. In the model, banks can insure against potential liquidity shocks by hoarding sufficient … precautionary liquid assets. However, it is never optimal to fully insure, so realized liquidity shocks trigger an asset fire sale …

disrupting the liquidity or stability of mortgage secondary markets. In the process, the programs have created a new financial … market for pricing and trading mortgage credit risk, which has grown in size and liquidity over time. The CRT programs …

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

liquidity. Interstate banking deregulation prompted lending by large, sophisticated, out-of-state banks, potentially altering … find that stock market liquidity increases following banking deregulation, especially for borrowers characterized by poorer …

We provide evidence that credit lines offer liquidity insurance to borrowers. Borrowers are able toextensively use … credit rating downgrades and credit line cuts, suggestingsubstantial liquidity access before credit line cuts. Credit line … drawdown. Building on this evidence, we develop a model where syndicates faced with liquidity shockscontinue to support credit …

2001 to 2010. Results of panel data regression analysis show that bank liquidity is positively related to capital adequacy … bank liquidity is ambiguous. …This paper aims to identify determinants of liquidity among Hungarian commercial banks. The data cover the period from …

We develop a theory of banks' liquidity risk management using global games, and characterize banks' optimal balance … predicts and links public and private liquidity premia. Our central underlying theorem is that a bank's liquidity multiplier … sheet choices. They use public liquidity as an input to issue more private liquidity to their creditors, and our model …