investigates how liquidity shocks affect such activities. Empirical results demonstrate that “borrow to lend” activities have …” activities. Liquidity shocks induce large private firms to take part in more “borrow to lend” activities, but they exert no …

default coexist, and bank default is a self-fulfilling prophecy. Capital and liquidity regulation can prevent bank default and …We study the interplay of capital and liquidity regulation in a general equilibrium setting by focusing on future … return prospects on the long-term investment turn out to be bad. For moderate return risk, equilibria with and without bank …

explains the link between the liquidity premium and spreads. We present a theory of endogenous bank fragility arising from a … coordination friction among bank creditors. The theory's implications reduce to a single constraint on banks, which is embedded in … that reduce bank net worth exacerbate the coordination friction. In response, banks lend less and demand more liquid assets …

The purpose of this paper is to investigate whether credit and liquidity risks individually and/or jointly impact bank … risk and liquidity risk on bank stability seem to be more pronounced for these types of banks. Our empirical results have … quality of borrowers and bank liquidity in the formulation of monetary policy as channels through which they can conduct an …