This study investigates the amount of liquidity that is necessary to settle a given network of financial obligations … a flow network technique to investigate how the interconnected feature could affect the required liquidity. Our main … fundamental perspective of how a hub or other network structures affect the required liquidity. We further investigate the …

The article deals with the liquidity risk in the banks in the context of the financial crisis. At first, the balance … sheet and market liquidity are defined and the main principles of the methods for measuring liquidity risk, which banks use …, are identified. Then follow review of main challenges of managing the liquidity of banks. Finally, it discusses …

-term resilience. We investigate the effects of such liquidity regulation on bank liquid assets and liabilities. Results indicate co …Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short …-integration of liquid assets and liabilities, to maintain a minimum short-term liquidity buffer. Still, microprudential regulation …

liquidity in normal times. Second, idiosyncratic transitory shocks introduce randomness in covenant violations that limits bank … aggregate liquidity shocks and firms against losing liquidity at will of banks. During aggregate liquidity shocks, banks need to … ration liquidity, and covenants allow banks to revoke credit lines if firms' accounting-performance measures fall below a …

Whether proprietary traders provide or take liquidity, and how their behavior evolves over the business cycle and … traders concentrate their trades in large and liquid stocks, but even in these, their liquidity provision is minimal. When … intermediary balance sheets are weak, proprietary traders do not provide any liquidity. Furthermore, proprietary traders do not …

Banks can deal with their liquidity risk by holding liquid assets (self-insurance), by participating in interbank … markets (coinsurance), or by using flexible financing instruments, such as bank capital (risk-sharing). We use a simple model … to show that undiversi fiable liquidity risk, i.e. the liquidity risk that banks are unable to coinsure on interbank …

2001 to 2010. Results of panel data regression analysis show that bank liquidity is positively related to capital adequacy … bank liquidity is ambiguous. …This paper aims to identify determinants of liquidity among Hungarian commercial banks. The data cover the period from …

We demonstrate that the co-existence of different motives for liquidity preferences profoundly affects the efficiency … of financial intermediation. Liquidity preferences arise because consumers wish to take precautions against sudden and … frictions, the co-existence of these motives enables banks to gain efficiencies from combining liquidity insurance and credit …

illiquid assets or underprovision of liquidity. We investigate whether imperfect competition (Cournot) improves welfare through … internalizing the externality and find that this is far from guaranteed. In a standard model of liquidity shocks, when liquidity is … sufficiently scarce, Cournot competition leads to even less liquidity than the Walrasian equilibrium. In a standard model of …

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 …