The pre-crisis period was characterised by ample liquidity, a credit boom, and low yields in a wide range of asset … relation between liquidity and the excessive accumulation of risks remains a central policy question. How do credit booms …

debt. This perspective explains among other things why opacity often enhances liquidity in credit markets and therefore why … important for thinking about policies on transparency, on capital buffers and other regulatory issues concerning banking and …

This paper studies the choice between building liquidity buffers and raising funding ex post, to deal with liquidity … shocks. We uncover the possibility of an inefficient liquidity squeeze equilibrium. Agents typically choose to build smaller … liquidity buffers when they expect cheap funding. However, when agents hold smaller liquidity buffers, they can raise less …

We examine the liquidity effects of the euro area sovereign debt crisis, including its effects on euro area banks as a … group, on intra-euro area financial flows, on the supply of and demand for collateral, and on international liquidity. The … deficit countries and its collateral policy. The euro crisis has also created international liquidity stresses. We find that …

This study outlines a methodology for mapping the increases in capital and liquidity requirements proposed under Basel …

explains why liquidity cannot easily be apprehended through a single statistics, and asks whether liquidity should be regulated … containment. Finally, the paper takes a macroeconomic perspective, discusses shortages of aggregate liquidity and analyses how … market value accounting and capital adequacy should react to asset prices. It concludes with a topical form of liquidity …

reinforcing steps in three areas: accounting, disclosure and risk management; the architecture of prudential regulation; and …