Castiglionesi, Fabio; Feriozzi, Fabio; Lóránth, Gyöngyi - 2014
Banks can deal with their liquidity risk by holding liquid assets (self-insurance), by participating in interbank markets (coinsurance), or by using flexible financing instruments, such as bank capital (risk-sharing). We use a simple model to show that undiversi fiable liquidity risk, i.e. the...
