global liquidity creation by key central banks and, second, an ex-ante global saving glut, brought about by the entry of a … adequacy requirements, privately rational but socially inefficient disintermediation, and competitive international de-regulation … England’s liquidity management, regulatory failure of the FSA, an inadequate deposit insurance arrangement and deficient …

We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The … model features endogenous capital structure, liquid asset holdings, payout, and default decisions. In the model, banks face …. Using the model, we show that liquidity requirements have no long-run effects on default risk but may increase it in the …

. The first group of firms are those with bank ownership, suggesting lower costs to banks of obtaining information and … external financing costs and liquidity constraints. Findings support the hypothesis of greater investment sensitivity to … liquidity constraints, as well as increased investment sensitivity over time, for the group of independent firms. …

This paper examines whether multinational banks have a stabilising or a destabilising role during times of financial … distress. With a focus on Europe, it looks at how these banks’ foreign affiliates have been faring during the recent financial … 2007 and 2009. This pattern is related to the functioning of the internal capital market through which these banks funnel …

Bailout expectations have led banks to behave imprudently, holding too little capital and relying too much on short … to liquidity assistance as a solution to forbearance. Faced with a bank that chooses capital and liquidity, the … institution providing liquidity assistance can commit to a mixed strategy: never bailing out is too costly and therefore not …

non-compliance with a liquidity requirement causes banks to pay and charge higher interest rates as well as to increase …We analyze the impact of non-compliance with a requirement similar to the Basel III Liquidity Coverage Ratio and its … impact on bank intermediation applying Regression Discontinuity Designs. Using a unique dataset on Dutch banks, we show that …

prices that banks pay for liquidity, captured here by borrowing rates in repos with the central bank and benchmarked by the … liquidity. We find that the price a bank pays for liquidity depends on the liquidity positions of other banks, as well as its … own. There is evidence that liquidity squeezes occasionally occur and short banks pay more the larger is the potential for …

for granted. As regulation of dynamic financial markets will inevitably be imperfect, prudent governments need to adjust …