This paper argues that counter-cyclical liquidity hoarding by financial intermediaries may strongly amplify business … funding liquidity risk in their inter- mediation activity. Importantly, the amount of liquidity reserves held in the financial … liquidity, which strongly amplifies the initial shock and induces credit crunch dynamics sharing key features with the Great …

modelling framework could be used both as a crisis management tool to help inform decisions on capital/liquidity infusions in …

We study the prices that individual banks pay for liquidity (captured by borrowing rates in repos with the central bank … depend in particular on the distribution of liquidity across banks, which is calculated over time using individual banklevel … data on reserve requirements and actual holdings. Banks pay more for liquidity when positions are more imbalanced across …

shock. Our contagion mechanism operates through a dual channel of liquidity and solvency risk. The joint modelling of banks …

How do capital and liquidity buffers affect the evolution of bank loans in periods of financial and economic distress … capital and liquidity buffers show a more muted response in their lending to adverse real economy shocks. Capital and … liquidity buffers also affect bank responses to monetary policy shocks. High bank capitalisation reduces the degree to which …

. Instead, our results are in line with the hypothesis that a lower trading volume reduces liquidity, and thereby market quality …

cash buffers in comparison with their unaffiliated peers. Banks provide liquidity support to distressed affiliated funds by … complementarities in investors’ redemptions. Liquidity support and other benefits of bank affiliation are conditional on the financial …