How should bank liquidity be regulated?
File(s)
Author(s)
Allen, HF
Gale, D
Type
Chapter
Abstract
One reason why the 2007–2009 financial crisis was so severe and had a global impact was massive illiquidity in many markets, particularly interbank markets. This combined with an extreme exposure of many financial institutions to liquidity needs meant investors ran on a variety of financial institutions, particularly in wholesale markets. Financial institutions and non-financial firms started to sell assets at fire-sale prices to raise cash, and central banks injected huge amounts of liquidity into financial systems…
Read More: https://www.worldscientific.com/doi/abs/10.1142/9789813223400_0011
Read More: https://www.worldscientific.com/doi/abs/10.1142/9789813223400_0011
Date Issued
2017-11-17
Citation
Achieving Financial Stability: Challenges to Prudential Regulation, 2017, 61, pp.135-157
ISBN
978-981-3223-39-4
Start Page
135
End Page
157
Journal / Book Title
Achieving Financial Stability: Challenges to Prudential Regulation
Volume
61
Copyright Statement
© 2017 World Scientific Publishing. This is a draft chapter / article. The final version is available in Achieving Financial Stability: Challenges to Prudential Regulation edited by Douglas D. Evanoff et al., published in 2017, Edward Elgar Publishing Ltd http://dx.doi.org/10.1142/9789813223400_0011
Article Number
11