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.
April 17, 2014
Liquidity Policies and Systemic Risk
Posted at 7:00 am in Financial Institutions, Financial Markets, Liquidity, Regulation, Systemic Risk | Permalink
April 16, 2014
Just Released: April Surveys Find Businesses Face Increasing Difficulty Retaining Skilled Workers
The Federal Reserve Bank of New York’s monthly business surveys include special supplementary questions on topics of interest.
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 15, 2014
On Fire‑Sale Externalities, TARP Was Close to Optimal
Imagine that many large and levered banks suffer heavy losses and must quickly sell assets to reduce their leverage. We expect the market price of the assets sold to decline, at least temporarily.
April 14, 2014
Depositor Discipline of Risk‑Taking by U.S. Banks
The recent financial crisis caused the largest rise in the number of bank failures since the unprecedented banking crisis of the 1980s and early 1990s.
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 11, 2014
Crisis Chronicles: Not Worth a Continental—The Currency Crisis of 1779 and Today’s European Debt Crisis
During the late 1770s, a newly founded United States began to run up significant debts to finance the American Revolution.
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.
April 7, 2014
A New Idea on Bank Capital
How does any firm decide on its capital structure – how much equity (capital) to use, how much debt?
April 4, 2014
Parting Reflections on the Series on Large and Complex Banks
The motivation for the Economic Policy Review series was to understand better the behavior of large and complex banks, and we have covered a lot of ground toward that end.
RSS Feed
Follow Liberty Street Economics
