We study efficiency properties of competitive economies in which banks provide liquidity insurance and interact on …

Although climate-induced liquidity risks can cause significant disruptions and instabilities in the financial sector … emergence of liquidity crises through interbank market dynamics. Our simulations show that the financial system could experience … serious funding and market liquidity shortages due to climate-induced liquidity crises. Our investigation contributes to our …

We analyze the determinants of individual bank failures arising from solvency and liquidity shortages in a stylized … banking system following Krause and Giansante (2012) where banks are characterized by the amount of capital, cash reserves and … that is used as a transmission mechanism for the failure of banks through the system. We trigger a potential banking crisis …

bank stability is more prominent for banks below the thresholds of equity, liquidity, or profitability. Banks’ government … securities holdings, however, increase bank risk when banks have high equity, liquidity, or profitability. Moreover, increased … liquidity or lending induces higher bank risk for banks with high equity or profitability. Banks’ cost efficiency and …