We show that a liquidity shock can affect the solvency of a bank and cause its default if the bank does not hold enough … over one and two (short) periods relative to the liquidity risk and, more particularly, to liquidity shock scenarios on an … level of liquid assets allowing it to remain solvent for the different liquidity shock scenarios and for both periods (i …

This paper develops a debt-run model to study the effects of liquidity injections on debt markets in the presence of a … terms of debt. We show that when equityholders have a large bargaining power, liquidity injections into distressed firms can …

liquidity risk and solvency risk and provides a convenient method to estimate the change in both of them based on the evolution …

Since the 2007–09 crisis, tougher bank liquidity regulation has been imposed which aims to ensure banks an survive a … related to liquidity, therefore offsetting some of the costs from higher liquidity requirements. We find evidence for this … relationship using post-crisis data for US banks, implying that liquidity requirements may be less costly than previously thought …

Since the 2007–09 crisis, tougher bank liquidity regulation has been imposed which aims to ensure banks can survive a … related to liquidity, therefore offsetting some of the costs from higher liquidity requirements. We find evidence for this … relationship using post-crisis data for US banks, implying that liquidity requirements may be less costly than previously thought …