We examine the system-wide effects of liquidity regulation on banks’ balance sheets. In the general equilibrium model … value before maturity, e.g., structured securities. By improving the liquidity of interbank markets, tighter liquidity … requirements induce banks to invest in such complex assets. We evaluate the welfare properties of combining liquidity regulation …

. Liquidity stress tests have been applied in parallel to and independently from solvency stress tests, based on scenarios which … testing of solvency and liquidity: our approach exploits the mechanisms underlying the solvency-liquidity nexus to derive … relations between solvency shocks and liquidity shocks. These relations are then used to model liquidity and solvency risk in a …

for complying with the NSFR liquidity requirement. The suggested approach, which is also flexible enough to be applied in …

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 …

. Liquidity stress tests have been applied in parallel to and independently from solvency stress tests, based on scenarios which … testing of solvency and liquidity: our approach exploits the mechanisms underlying the solvency-liquidity nexus to derive … relations between solvency shocks and liquidity shocks. These relations are then used to model liquidity and solvency risk in a …

have despite this received scant attention in the credit-line literature. In this paper, I study the liquidity … commercial-paper market during the COVID-19 pandemic as an exogenous shock to the supply of market-provided liquidity. I find … that backup lines provide commercial-paper issuers with reliable liquidity insurance and that banks' liquidity provision …

This paper investigates the relationship between credit risk and liquidity risk, based on the potential interdependence … between liquid asset ratio and non-performing loans ratio, as well as systemic liquidity risk. The data used cover the period … 2007–2012 and the country of study is Greece. We find that the liquid asset ratio decreases as non-performing loans ratio …