We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' insolvency … regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity … requirements leads to lower bank losses in default at the cost of an increased likelihood of default. Combining liquidity …

the PRC find it quite easy to meet the new Basel III capital and liquidity standards. Basel III is only part of an …

central bank as a provider of liquidity to banks individually and to the market as a whole. Finally, the approach needs to … should be taken to avoid forbearance, including the transfer of responsibility for emergency liquidity assistance (ELA) from …

Procyclicality of collateral haircuts and margins has become a widely proclaimed behavior and is currently discussed … not only by academic literature but also by regulatory authorities in Europe. Procyclicality of haircuts is assumed to be … a trigger of liquidity spirals due to its tightening effect of collateral portfolio values in times of market distress …

Commission and the Federal Reserve. We conclude that the conventional view concerning the societal benefits of liquidity …