We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …

A model of loan rate competition with liquidity provision by banks is used to study bank mergers. Both loan rate … competition and liquidity needs are seen to be "localised" phenomena. This allows for tracing down the effects of particular types … of bank mergers. As such, we contrast the effects of "revenue base enhancing" mergers with the effects of mergers "for …

We model the impact of bank mergers on loan competition, reserve holdings and aggregate liquidity. A merger creates an … the interbank market. Loan market competition modifies the heterogeneity in the size of banks, thus affecting aggregate … operations by the central bank. …

A model of loan rate competition with liquidity provision by banks is used to study bank mergers. Both loan rate … competition and liquidity needs are seen to be "localised" phenomena. This allows for tracing down the effects of particular types … of bank mergers. As such, we contrast the effects of "revenue base enhancing" mergers with the effects of mergers "for …

bank's volatile liabilities are covered by its stock of liquid assets. We show that the standard factor models -- even when … augmented with bond risk, market liquidity, and financial-size factors -- do not fully explain the cross section of bank stock … risk banks delivers a statistically significant alpha of 6 percent annually. This effect is not driven by bank …

secondary asset markets. While all banks are subject to extrinsic risk, a bank's portfolio choice determines whether it is prone … to a bank run in one of the extrinsic states. Asset prices determine the value of bank assets and thus how to structure … prices are state-dependent, bank runs do not occur and the efficient allocation obtains. Interbank asset markets are also a …