I test and find supporting evidence for the precautionary motive hypothesis of liquidity hoarding for U.S. commercial banks during the recent financial crisis. I find that banks held more liquid assets in anticipation of future losses from securities write-downs. Exposure to securities losses in...

We study the severe credit crunch of finance companies (SOFOLES) in Mexico using firm-level data between 2001 and 2011. Our results provide supporting evidence for a liquidity shock in the form of restricted access to commercial bank loans, loans from other organizations and public debt markets...

Multi-agency financial stability committees (FSCs) have grown dramatically since the global financial crisis. However, most cannot direct actions or recommend to other agencies that they take actions, and most would influence policy actions only through convening and discussing risks. We...