The Role Of Interbank Relationships And Liquidity Needs PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The Role Of Interbank Relationships And Liquidity Needs PDF full book. Access full book title The Role Of Interbank Relationships And Liquidity Needs.
Author | : Ben R. Craig |
Publisher | : |
Total Pages | : 44 |
Release | : 2016 |
Genre | : |
ISBN | : |
Download The Role of Interbank Relationships and Liquidity Needs Book in PDF, ePub and Kindle
In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the concentration of credit relationships and the position of a bank in the network topology of the system influence the bank's ability to meet its liquidity demand. We use quarterly data of bilateral interbank credit exposures between all German banks from 2000 to 2008 to measure interbank relationships and the network characteristics. We match these data with the bids placed by the individual banks in the European Central Bank's (ECB) weekly repo auctions. The bids measure each bank's willingness to pay for liquidity since they had variable rate tenders with a 'pay-your-bid' price. Controlling for bank characteristics and the daily fulfillment of reserve requirements, we find that banks with a more diversified borrowing structure in the interbank market bid significantly less aggressively and pay a lower price for liquidity in the ECB's main refinancing operations. These findings suggest that incentives to diversify bank liquidity risk dominate the benefits of private information. When the network position of the bank is taken into account, we find that central lenders in the money market bid more aggressively in the auctions.
Author | : Falk Bräuning |
Publisher | : |
Total Pages | : 0 |
Release | : 2016 |
Genre | : |
ISBN | : |
Download Relationship Lending in the Interbank Market and the Price of Liquidity Book in PDF, ePub and Kindle
Author | : Charles W. Calomiris |
Publisher | : |
Total Pages | : 47 |
Release | : 2016 |
Genre | : Banks and banking |
ISBN | : |
Download Interbank Networks in the National Banking Era Book in PDF, ePub and Kindle
"The unit banking structure of the United States gave rise to a uniquely important interbank correspondent network, which linked banks throughout the country during the National Banking Era. During normal times, these interbank network relationships provided banks with access to money markets, facilitated payment processing, and helped banks meet legal reserve requirements. The authors collect and analyze data on individual correspondent relationships of national banks to map the structure of the network, identify the factors that led banks to adopt different correspondent network structures, and examine the consequences of network choices for bank liquidity risk. Banks network profiles differed according to the range of services they needed or provided to their customers. For instance, banks providing more checking services focused their interbank relationships on banks in New York City, which was central to the payment clearing system. Location characteristics also mattered; banks in areas with more manufacturing firms maintained more network connections. Differences in network profiles propagated liquidity risk during the Panic of 1893, one of the most severe panics of the National Banking Era. Banks with relatively high two-sided interbank liquidity risk - those that both held more of their liquid assets with their correspondents and were funded to a greater extent by the deposits of other banks - were more likely to close. New York City banks suspended convertibility during the crisis. Banks that relied more heavily on New York correspondents as a source of liquidity were more likely to close."--Abstract.
Author | : Philippe Aghion |
Publisher | : |
Total Pages | : 40 |
Release | : 1998 |
Genre | : Bailouts (Government policy) |
ISBN | : |
Download Optimal Design of Bank Bailouts Book in PDF, ePub and Kindle
In most recent banking crises bank regulators have been caught off their guard and have been forced to respond to the crisis in a hurry without the support of an institutional or legal framework designed to deal with bank failures. This is in sharp contrast with the non-financial sector, where a detailed and elaborate bankruptcy law governs the process of liquidation or reorganisation of financially distressed firms. In this paper we address the question of how to design a bankruptcy institution for banks that would serve a similar purpose as existing bankruptcy laws for non-financial firms.
Author | : Christian Upper |
Publisher | : |
Total Pages | : 37 |
Release | : 2016 |
Genre | : |
ISBN | : |
Download Estimating Bilateral Exposures in the German Interbank Market Book in PDF, ePub and Kindle
Credit risk associated with interbank lending may lead to domino effects, where the failureKreditrisiken aus Interbankbeziehungen können zu Dominoeffekten führen indem der.
Author | : Bengt Holmstrom |
Publisher | : MIT Press |
Total Pages | : 263 |
Release | : 2013-01-11 |
Genre | : Business & Economics |
ISBN | : 0262518538 |
Download Inside and Outside Liquidity Book in PDF, ePub and Kindle
Two leading economists develop a theory explaining the demand for and supply of liquid assets. Why do financial institutions, industrial companies, and households hold low-yielding money balances, Treasury bills, and other liquid assets? When and to what extent can the state and international financial markets make up for a shortage of liquid assets, allowing agents to save and share risk more effectively? These questions are at the center of all financial crises, including the current global one. In Inside and Outside Liquidity, leading economists Bengt Holmström and Jean Tirole offer an original, unified perspective on these questions. In a slight, but important, departure from the standard theory of finance, they show how imperfect pledgeability of corporate income leads to a demand for as well as a shortage of liquidity with interesting implications for the pricing of assets, investment decisions, and liquidity management. The government has an active role to play in improving risk-sharing between consumers with limited commitment power and firms dealing with the high costs of potential liquidity shortages. In this perspective, private risk-sharing is always imperfect and may lead to financial crises that can be alleviated through government interventions.
Author | : Board of Governors of the Federal Reserve System |
Publisher | : |
Total Pages | : 0 |
Release | : 2002 |
Genre | : Banks and Banking |
ISBN | : 9780894991967 |
Download The Federal Reserve System Purposes and Functions Book in PDF, ePub and Kindle
Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.
Author | : Ben Craig |
Publisher | : |
Total Pages | : 50 |
Release | : 2010 |
Genre | : Banks and banking |
ISBN | : |
Download Interbank Tiering and Money Center Banks Book in PDF, ePub and Kindle
Author | : Mr.Simon Gray |
Publisher | : International Monetary Fund |
Total Pages | : 57 |
Release | : 2011-02-01 |
Genre | : Business & Economics |
ISBN | : 1455217905 |
Download Central Bank Balances and Reserve Requirements Book in PDF, ePub and Kindle
Most central banks oblige depository institutions to hold minimum reserves against their liabilities, predominantly in the form of balances at the central bank. The role of these reserve requirements has evolved significantly over time. The overlay of changing purposes and practices has the result that it is not always fully clear what the current purpose of reserve requirements is, and this necessarily complicates thinking about how a reserve regime should be structured. This paper describes three main purposes for reserve requirements - prudential, monetary control and liquidity management - and suggests best practice for the structure of a reserves regime. Finally, the paper illustrates current practices using a 2010 IMF survey of 121 central banks.
Author | : Mr.Stijn Claessens |
Publisher | : International Monetary Fund |
Total Pages | : 37 |
Release | : 2012-12-04 |
Genre | : Business & Economics |
ISBN | : 1475583583 |
Download Shadow Banking Book in PDF, ePub and Kindle
This note outlines the basic economics of the shadow banking system, highlights (systemic) risks related to it, and suggests implications for measurement and regulatory approaches.