99 posts on "Liquidity"
October 15, 2014
How Do Liquidity Conditions Affect U.S. Bank Lending?
he recent financial crisis underscored the importance of understanding how liquidity conditions for banks (or other financial institutions) influence the banks’ lending to domestic and foreign customers.
October 1, 2014
Cross‑Country Evidence on Transmission of Liquidity Risk through Global Banks
Over the past thirty years, the typical large bank has become a global entity with subsidiaries in many countries.
Posted at 7:00 am in Banks, Euro Area, Financial Institutions, Financial Markets, International Economics, Liquidity | Permalink
September 29, 2014
Direct Purchases of U.S. Treasury Securities by Federal Reserve Banks
Kenneth D. Garbade From time to time, and most recently in the April 2014 meeting of the Treasury Borrowing Advisory Committee, U.S. Treasury officials have questioned whether the Treasury should have a safety net that would allow it to continue to meet its obligations even in the event of an unforeseen depletion of its cash balances. […]
Posted at 7:00 am in Fed Funds, Financial Institutions, Liquidity, Monetary Policy, Treasury | Permalink | Comments (2)
August 25, 2014
Turnover in Fedwire Funds Has Dropped Considerably since the Crisis, but It’s Okay
Funds Service is a large-value payment system, operated by the Federal Reserve Bank of New York, that facilitates more than $3 trillion a day in payments.
April 18, 2014
How Liquidity Standards Can Improve Lending of Last Resort Policies
Prior to the Great Recession, the focus of bank regulation was on bank capital with little consensus about the need for liquidity regulation.
Posted at 7:00 am in Financial Institutions, Lender of Last Resort, Liquidity, Regulation | Permalink
April 17, 2014
Liquidity Policies and Systemic Risk
One of the most innovative and potentially far-reaching consequences of regulatory reform since the financial crisis has been the development of liquidity regulations for the banking system.
Posted at 7:00 am in Financial Institutions, Financial Markets, Liquidity, Regulation, Systemic Risk | Permalink
April 16, 2014
The Liquidity Stress Ratio: Measuring Liquidity Mismatch on Banks’ Balance Sheets
Liquidity transformation—funding longer-term assets with short-term liabilities—is one of the main functions that banks provide. However, this liquidity mismatch exposes banks to liquidity risk.
April 14, 2014
Liquidity Risk, Liquidity Management, and Liquidity Policies
During the 2007-09 financial crisis, banks experienced widespread funding shortages, with shortfalls even hindering adequately capitalized banks.
April 9, 2014
Lunch Anyone? Volatility on the Tokyo Stock Exchange around the Lunch Break on May 23, 2013, and Stock Market Circuit Breakers
Stock market circuit breakers halt trading activity on a single stock or an entire exchange if a sudden large price move occurs.
February 26, 2014
Factors that Affect Bank Stability
Thomas M. Eisenbach and Tanju Yorulmazer In a previous Liberty Street Economics post, we introduced a framework for thinking about the risks banks face. In particular, we distinguished between asset return risk and funding risk that can interact and cause a bank to fail. In our framework, a bank can fail for two reasons:
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