Market makers are key entities providing liquidity to the market. Their activity has influence on transaction costs that are expressed mainly by bid-ask spreads. On unregulated markets a research is quite often cumbersome due to lack of transparent data. The paper presents factors having...

We examine the effect of liquidity imbalances on liquidity risk using 224 bank exits from interbank markets between 1994 and 2014 in 54 emerging and developed countries. We find that bank exits from interbank markets decrease bank liquidity, especially when net placers exit an interbank market....