liquidity regulation. Our identification strategy uses a regression kink design that relies on the variation in a marginal high …We investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a … credit supply. Liquidity requirements also depress banks' profitability, though some of the regulatory costs are passed on to …

national liquidity requirements to proxy for banks' incentives to exploit this differential treatment of central bank eligible …We analyze the pledging behavior of Euro area banks during the introduction of the liquidity coverage ratio (LCR). The … LCR considers only a subset of central bank eligible assets and thereby offers banks an arbitrage opportunity to improve …

as to provide liquidity and risk-sharing services to the real economy. Our modifications create wedges in the asset and … joint implementation of a capital and a liquidity regulation … and run risk. Banks choose between liquid and illiquid assets on the asset side, and between deposits and equity on the …

here primarily look at fiscal policy and sovereign risk perspectives, papers on the monetary policy and regulatory …

We employ a proprietary transaction-level dataset in Germany to examine how capital requirements affect the liquidity … average trade size. While non-bank affiliated dealers increase their market-making activity, they are unable to bridge this … gap - aggregate liquidity declines. Our results are stronger for banks with a higher capital shortfall, for non …

fragility of banks we use the probability-of-default of banks as a proxy for bank failure. After analyzing data collected from … regulations have risk-reducing benefits for banks and the impact of financial regulations on default risk is not the same for … conventional banks (CBs) and Islamic banks (IBs). The empirical evidence suggests that regulations that lessen overall default risk …

, liquidity management, and synergy improvements that reduce risk. The outcomes of such trade-offs may depend on bank governance … this type of complexity, leading to a decrease in systemic risk and an increase in liquidity risk among BHCs. While bank …Bank holding companies (BHCs) can be complex organizations, conducting multiple lines of business through many distinct …

reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …

We analyze retail central bank digital currency (CBDC) in a two-tier monetary system with bank deposit market power and … externalities from liquidity transformation. Resource costs of liquidity provision determine the optimal monetary architecture and … distortions or instrument restrictions are present. Depending on central bank choices CBDC raises U.S. bank funding costs by up to …

A model of loan rate competition with liquidity provision by banks is used to study bank mergers. Both loan rate … competition and liquidity needs are seen to be "localised" phenomena. This allows for tracing down the effects of particular types … of bank mergers. As such, we contrast the effects of "revenue base enhancing" mergers with the effects of mergers "for …