This paper presents an interbank market model with a heterogeneous banking sector. We show that banks participate in … shows that this heterogeneity implies intermediation by banks with relatively low marginal costs. The resulting positive … latter across banks. …

Bilateral payment flows between banks may provide private information about a borrowing bank's liquidity position. This … whether the information is used to reduce search costs in the unsecured interbank market. In the former, banks with outflows … of liquidity are penalized by their counterparties, while in the latter, these banks benefit through reduced search costs …

be associated with large Canadian banks' end-of-month repo adjustments. By combining market, central-bank and payments …

We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit … the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as … higher returns. Effects are stronger for less capitalized banks, private sector (financial and non-financial) securities and …

We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit … the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as … higher returns. Effects are stronger for less capitalized banks, private sector (financial and non-financial) securities and …