crisis of past decades. Liquidity risks usually occur as a consequence of other kinds of risks, hence analysing scenarios in … funding costs are appropriate. The structural liquidity risk and the degree of the liquidity mismatch can be measured based on … the liquidity gap analysis, where expected cash-in- and outflows, divided in different time-buckets are depicted. The …

I study how liquidity information influences banks' liquidity holdings, using the disclosure of bank liquidity coverage … ratio (LCR) mandated for a group of large US banks. While the disclosure rule aims to increase liquidity in the banking … system, I find that non-disclosing banks responded by reducing liquid asset holdings due to the impact of liquidity …

In this paper we introduce two measures, the Systemic Liquidity Buffer (SLB) and the Systemic Liquidity Shortfall (SLS …) to assess liquidity in the banking system. The SLB takes an aggregated perspective on liquidity risks in the banking … system. In contrast, the SLS focusses on the problematic banks which suffer a liquidity shortfall. These measures provide an …

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 … liquidity provision and the roles of the public budget and the central bank. The comparison also reveals that the role of fiscal …

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 …

We employ a proprietary transaction-level dataset in Germany to examine how capital requirements affect the liquidity … gap - aggregate liquidity declines. Our results are stronger for banks with a higher capital shortfall, for non …

Ensuring liquidity is critical for the functioning of banks. This study investigates the functional form of bank … profit-maximizing level of liquidity. However, Islamic banks are less nonlinear than conventional banks, suggesting that … profitability. Additionally, we find that the optimal level of liquidity to maximize profitability fell during Covid-19 as the …

The crisis of 2007-2009 has shown that financial market turbulence can lead to huge funding liquidity problems for … liquidity management are modeled in a panel Vector Autoregressive (p-VAR) framework. Orthogonalized impulse responses reveal … that banks respond to a negative funding liquidity shock in a number of ways. First, banks reduce lending, especially …