This paper investigates the impact of ample liquidity provision by the European Central Bank on the functioning of the … main euro area payment system. To identify exogenous shocks to central bank liquidity, we exploit the timing of ECB … liquidity operations and use a simple structural vector auto-regression framework. We argue that the ECB acted as a de …

the ‘policy shock' represented by the ECB's increasing role as a financial intermediary. We find small but significant …

This paper tests the hypothesis of liquidity hoarding in the Italian banking system during the 2007-2011 global …' interventions are ineffective because banks hoard the liquidity injected rather than channelling it on to other banks and the real … the crisis, and, contrary to widespread conjecture, the liquidity injected by the Eurosystem was intermediated among banks …

banks to have private information about the risk of their assets. We show how banks' asset risk affects funding liquidity in … state with adverse selection and elevated rates; and iii) market breakdown with liquidity hoarding. We provide an … of unsecured rates and excess reserves banks hold, as well as the inability of massive liquidity injections by central …

account that banks are related to each other in various market segments. The contagion effects when considering the shock …

to the fragmentation of the euro area money market. A triple-difference estimate shows that the borrowing of banks in the … cross-border borrowing. Our findings document the severe malfunctioning of the market for liquidity caused by asymmetric …

The paper studies the central bank collateral framework and its impact on banks’ liquidity under an adverse stress test … scenario. We construct a stress test model that accounts for a granular and multi-faceted representation of the liquidity of … scenarios: the EBA regulatory stress test exercise, a shock to Russia and the Eastern European countries, and a shock to the …

. Therefore, the analysis suggests that there is a lower bound for the amount of liquidity provided through short-term operations …

financial services, it also creates structural vulnerabilities: pernicious shock transmission and amplification impacting banks …