during the 19th century to facilitate interregional payments and flows of liquidity and credit. Vast sums moved through the … the system's resilience to solvency and liquidity shocks and whether these shocks might have been contagious. We find that … the interbank system became more resilient to solvency shocks, but less resilient to liquidity shocks, as banks sharply …

of network choices for bank liquidity risk. Banks' network profiles differed according to the range of services they … liquidity risk during the Panic of 1893, one of the most severe panics of the National Banking Era. Banks with relatively high … two-sided interbank liquidity risk - those that both held more of their liquid assets with their correspondents and were …

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 …

During the 2007-09 financial crisis, there were severe reductions in the liquidity of financial markets, runs on the … Reserve, in its role as lender of last resort (LOLR), injected extraordinary amounts of liquidity. In the aftermath, lawmakers … introduction of liquidity regulations. These changes were motivated in part by the argument that central bank lending entails …

This paper studies how over-the-counter market liquidity is affected by securities lending. We combine micro-data on … program in 2008 caused a statistically and economically significant reduction in the market liquidity of corporate bonds … predominantly held by AIG. We also show that an important mechanism behind the decrease in corporate bond liquidity was a shift …

Open-end mutual funds expose themselves to liquidity risk by granting their investors the right to daily redemptions at … of large destabilising outflows.Optimal swing pricing balances this risk with the benefit of providing liquidity to cash …-constrained investors. We derive bounds, depending on trading costs and the share of liquidity-constrained investors, within which a fund …

We study the effects of the new Basel III liquidity regulations in jurisdictions with a limited supply of high …-quality liquid assets. Using a model based on Bech and Keister (2013), we show how introducing a liquidity coverage ratio in such … settings can have significant side effects, leading to a large liquidity premium and pushing the short-term interest rate to …

funding liquidity and yields. In particular, we spotlight how in the 1960s the Federal Reserve, working in conjunction with … the BIS and European central banks, repeatedly used swaps to manage eurodollar funding liquidity and Libor yields. BIS …, Bank of England and Swiss National Bank archives show an intention to offset seasonal disturbances to funding liquidity in …

What are liquidity crises? And what can be done to address them? This short paper brings together some personal …: the distinction between idiosyncratic and systematic elements of liquidity crises; the growing reliance on funding … liquidity in a market-based financial system; the role of payment and settlement systems; the need to improve liquidity buffers …