unanticipated insolvency of one bank. Banks that cannot rule out an indirect hit react by selling assets and hoarding liquidity …. While this potentially lowers illiquidity risks, it depresses market liquidity and prices. This leads to a negative … externality by which sales to acquire liquidity simultaneously lead to lower global sale proceeds and thus to a greater number of …

from 1999 to 2014. We estimate cost functions with and without proxies for regulation and analyze the results with respect … to period, bank size, and group affiliation. Our results show that regulatory costs were peaking in 2001, 2008, and … lately since 2012. Most interesting, however, is the asymmetry of regulation: Whereas the cost effects were symmetric for all …

relevant for a customer (beyond return and risk) and which functions are adequate to evaluate portfolios of investment … alternatives with regard to these objectives? Based on empirical literature on customers' goals, the four objectives liquidity … more objectives than return and risk. On the other hand, as the derived functions are standardised, they can be used in …