We construct the first measure of collateral re-use at the bank and bond level for the European repo market using a … than liquidity and profit from the repo rate spread. Yet, dealers also re-use collateral to source liquidity which exposes … them to collateral runs. Our results contribute to the policy debate on trade-offs between shock absorption and financial …

credit via revaluation of collateral and subsequent lending decisions. Specifically we examine banks’ treatment of real … estate collateral during the Covid-19 crisis. First we find evidence of significant frictions in the trans-mission of asset … price dynamics to collateral values. Despite this we find that lending relationships reliant on real estate collateral …

RationaleThe share of non-marketable assets (mainly bank loans) pledged as collateral in the Eurosystem’s monetary … collateral pledged by Spanish counterparties in Eurosystem financing operations. A significant proportion of these non …

collateral hedging, which enables collateral protection insurance (CPI) contracts together with existing investment in capital to … higher collateral requirements on CPI or capital, towards mitigating default friction and maximizing social welfare. The … for higher collateral requirements on capital; while under moderate levels of disagreement, increasing collateral …

business. As proxies for financial constraints, we use prefectural variations in the share of firms using physical collateral … physical collateral and business startups. Our findings suggest that the low level of entrepreneurship in Japan is due to a …

This paper proposes a model of collateral policy to study the impact of the expansion of collateral scope by central … empirically tests the effect of the expansion of the collateral scope for Medium-Term Lending Facility (MLF) by the People's Bank … of China's on corporate financing costs. We find that this loosening of collateral policy in China can significantly …

The paper studies the central bank collateral framework and its impact on banks’ liquidity under an adverse stress test … significantly after the initial shock. We find evidence of a threshold in the benefits of expanding the collateral framework and … institutions can rely on the collateral framework channel …

This paper investigates contagion in financial networks through both debt and collateral markets. We find that the role … of collateral is mitigating counterparty exposures and reducing contagion but has a phase transition property. Contagion … can change dramatically depending on the amount of collateral relative to the debt exposures. When there is an abundance …

. Large-scale rating of non-public French firms, whose credit claims can be deposited as collateral at the central bank …, creates a unique opportunity to assess economically relevant effects of collateral policy and identify the transmission … the literature, depend crucially upon a rigorous institutional setting and a clear distinction between collateral …