States. Long-term cost estimates are provided for Basel III capital and liquidity requirements, derivatives reforms, and …

to previous episodes of financial distress, foreign banks appear to have played a shock-transmitting role, as there was a … sharp slowdown in lending by foreign banks’ affiliates relative to domestic banks. However, given the uniqueness of the … COVID-19 shock and the impact of lockdowns on economic activity, foreign banks were found to lend at a higher rate than …

Developing a systemic liquidity stress testing tool is challenging due to data constraints and hard-to-model behavioral … factors. There has yet to be a uniformly accepted model partly because the nature of systemic liquidity risks differs … significantly across countries. This paper offers a simple Excel-based tool to assess the high-level impact of aggregate liquidity …

Financial regulation is often framed as a question of economic efficiency. This paper, by contrast, puts the … distributive implications of financial regulation center stage. We develop a model in which the financial sector benefits from risk … sector, which is aided by deregulation, against efficiency in the real economy, which is aided by tighter regulation and a …

We formulate the “High Liquidity Creation Hypothesis” (HLCH) that a proliferation in the core activity of bank … liquidity creation increases failure probability. We test the HLCH in the context of Russian banking, which provides a natural … field experiment due to numerous failures experienced over the past decade. Using Berger and Bouwman's (2009) liquidity …