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Using quarterly data of U.S. commercial banks, we investigate the impact of market liquidity shortages on banks' capitalization and balance sheet adjustments. Our findings reveal that an acute liquidity shortage leads small U.S. commercial banks, but not large ones, to positively adjust their...
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The Basel III Accord imposes minimum liquidity standards on bank balance sheets that are already constrained by minimum … that resulted in greater balance sheet liquidity. Thus, in the state of nature that has traditionally most concerned bank … regulators (i.e., stress to bank equity capital), community banks increase their liquidity buffers. Given that these lenders do …
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. Using a simultaneous-equations framework, we investigate the relationship between bank capital buffer and liquidity for … European and US publicly traded commercial banks from 2000 to 2008. Previous research studying the determinants of bank capital …
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. Using a simultaneous equations framework, we investigate the relationship between bank regulatory capital and bank liquidity … determinants of bank capital buffer has neglected the role of liquidity. On the whole, we find that banks decrease their regulatory …
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