We propose a unified framework to study liquidity provision by debt-issuing versus equity-issuing financial intermediaries. We show that both types of intermediaries provide liquidity by insuring against idiosyncratic liquidity risks as in Diamond and Dybvig (1983) but with distinct frictions....

We evaluate the effects of post-crisis liquidity regulation on the U.S. banking system. We find that regulated banks have substantially improved their liquidity ratios by holding more liquidity buffers and terming out their liabilities. However, some liquidity transformation has migrated to...

This paper investigates, theoretically and empirically, the effects of liquidity regulation on the banking system. We document that the current quantity-based liquidity rule has reduced banks' liquidity risks. However, the mandated liquidity buffer appears to crowd out bank lending and lead to a...