provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …

in 2017, there was no commensurate shrinkage of these claims on liquidity. Consequently, the financial sector was left … more sensitive to potential liquidity shocks, with weaker-capitalized banks most exposed. This necessitated Fed liquidity … provision in September 2019 and again in March 2020. Liquidity-risk-exposed banks suffered the most drawdowns and the largest …

in 2017, there was no commensurate shrinkage of these claims on liquidity. Consequently, the financial sector was left … more sensitive to potential liquidity shocks, with weaker-capitalized banks most exposed. This necessitated Fed liquidity … provision in September 2019 and again in March 2020. Liquidity-risk-exposed banks suffered the most drawdowns and the largest …

We study the interbank lending and asset sales markets in which banks with surplus liquidity have market power …

When liquidity chasing banks is high, loan officers (or risk-takers) inside banks expect future losses to be readily … Banks should "lean against bank liquidity." In particular, Central Banks should adopt a contractionary monetary policy in … times of excessive bank liquidity …

We study liquidity transfers between banks through the interbank borrowing and asset sale markets when(i)surplus banks … providing liquidity have market power, ii)there are frictions in the lending market due to moral hazard, and(iii)assets are bank … markets, or is prepared to extend potentially loss-making loans. The public provision of liquidity to banks, in fact its mere …