Monetary Policy and Bank Liquidity Creation

Bank Liquidity Creation, Monetary Policy, and Financial Crises

Keywords: Monetary Policy, Financial Crises, Liquidity Creation, and Banking. JEL Classification: E52, G01, G28, and G21. Data on liquidity creation from 1984: ...

Bank liquidity creation, monetary policy, and financial crises

We find that high liquidity creation relative to trend tends to be followed by financial crises – even after controlling for other macroeconomic factors and ...

Monetary Policy and Bank Liquidity Creation: Does Bank Size Matter?

Monetary policy is a macroeconomic policy conducted by a central bank or other regulatory committees to adjust the size of the money supply into an economy.

What drives bank liquidity creation? The interaction of monetary ...

In this vein, liquidity creation is created when banks use liquid liabilities to fund illiquid assets (on balance sheets) and through loan ...

Monetary Policy and Bank Liquidity Creation - University of Sheffield

We propose a general Markov switching framework to examine the effects of monetary policy on liquidity creation while accounting for endogenous ...

What drives bank liquidity creation? The interaction of monetary ...

The study confirms the existence of the bank liquidity creation channel, i.e., an easing monetary policy boosts the banks' liquidity creation ...

Bank Liquidity Creation | The Review of Financial Studies

The standard view of liquidity creation is that banks create liquidity by transforming illiquid assets into liquid liabilities. Diamond and Rajan (2000, 2001) ...

Monetary Policy and Bank Liquidity Creation: Does Bank Size Matter?

This paper investigates the effect of monetary policy on liquidity creation of commercial banks and if the effect is conditional on.

Bank Liquidity Creation, Monetary Policy, and Financial Crises

How well does monetary policy affect bank behavior, particularly during financial crises? What is the role of banks in creating asset ...

Economic Policy Uncertainty and Bank Liquidity Creation

Results hold across bank size classes, but are weaker during financial crises, possibly because of favorable government treatment during crises shielding them ...

Uncertainty and the transmission of monetary policy via bank ...

Monetary expansion enhances banks' ability to create liquidity, affirming the existence of the bank liquidity creation channel. Further analyses ...

Funding Liquidity Creation by Banks

Private money creation by banks enables lending to not be constrained by the supply of cash deposits. During the 2001–2020 period, 92 percent of bank deposits ...

Bank Liquidity Creation, Monetary Policy, and Financial Crises

... Berger, A.N. et al. examined the interaction between bank liquidity creation, monetary policy, and financial crisis. The results show that high liquidity ...

Bank Liquidity Creation | The Review of Financial Studies

Although the modern theory of financial intermediation portrays liquidity creation as an essential role of banks, comprehensive measures of bank liquidity ...

Bank capital and liquidity creation: Granger-causality evidence

Basel III is based on the conclusion that the financial crisis was rooted in the low solvency levels of banks' balance sheets. As a consequence, these rules ...

Bank liquidity creation, monetary policy, and financial crises

Abstract · We expand on the early crisis warning literature by using liquidity creation. · We find that high bank liquidity creation helps predict future crises ...

Bank Liquidity Creation, Monetary Policy, and Financial Crises

We find that: (1) during normal times, monetary policy affects liquidity creation only for small banks; (2) monetary policy effects are weaker for banks of all ...

Christa Bouwman - Research

Describes how high levels of bank liquidity creation may cause or predict future financial crises. Addresses questions of research and policy interest related ...

Interest rate shocks, competition and bank liquidity creation

Banks adjust their supply of loans and liquidity to the real economy directly in response to changes in monetary policy, thereby affecting the ...

Monetary Policy and Bank Liquidity Creation: Does Bank Size Matter?

Different econometric techniques are employed to analyse the data. Obtained results indicate that a contractionary monetary policy could lead to ...