We quantify the impact that central bank refinancing operations and funding facilities had at reducing the banking … of Diamond & Dybvig (1983), banks’ default and contagion, and central bank funding. Our framework incorporates demand and … the amount of deposits covered by the deposit guarantee scheme and the borrowing from the European Central Bank (ECB). We …

The banking system is modeled in a closed system of financial accounts, whereby the equilibrium volume of bank … facility rate of the central bank. The model also allows understanding the link between this difference (the width of the … central bank standing facilities corridor) and the stance of monetary policy, and how this link changes during a financial …

central bank for this economy and use it to evaluate the performance of alternative simple rules. We find that a simple rule …

with new Basel III regulations and with central bank policies (liquidity provision, asset purchases and the Securities … with worsening money market conditions, while higher central bank liquidity provision was associated with reduced money … market stress. After 2015, the evidence is consistent with central bank asset purchases inducing scarcity effects in some …

We analyse the effects of central bank government bond purchases in an estimated DSGE model for the euro area. In the … model, central bank asset purchases are relevant in so far as agency costs distort banks asset allocation between loans and … inefficient time variation in the term premia and open up for a credit channel of central bank government bond purchases …