We study liquidity transfers between banks through the interbank borrowing and asset sale markets when, (i) surplus …) compared to outside markets, or is prepared to extend potentially loss-making loans. The public provision of liquidity to banks …, in fact its mere credibility, can thus improve the private allocation of liquidity among banks. This rationale for …

We study the interbank lending and asset sales markets in which banks with surplus liquidity have market power …

When liquidity chasing banks is high, loan officers (or risk-takers) inside banks expect future losses to be readily … Banks should "lean against bank liquidity." In particular, Central Banks should adopt a contractionary monetary policy in … times of excessive bank liquidity …

Can banks maintain their advantage as liquidity providers when exposed to a financial crisis? While banks honored their … credit lines drawn by firms during the 2007-09 crisis, this provision of liquidity by banks was only possible because of …

Can banks maintain their advantage as liquidity providers when exposed to a financial crisis? While banks honored their … credit lines drawn by firms during the 2007-09 crisis, this provision of liquidity by banks was only possible because of …

Can banks maintain their advantage as liquidity providers when exposed to a financial crisis? While banks honored their … credit lines drawn by firms during the 2007-09 crisis, this provision of liquidity by banks was only possible because of …

financial implications for firms that use credit lines as an instrument of liquidity management …

the heart of a new bank liquidity channel. This channel complements the traditional bank lending channel, which focuses on …