Liquidity Regulation, Monetary Policy and Welfare

2016 ◽  
Author(s):  
George John Bratsiotis
Keyword(s):  
Monetary Policy ◽  
Liquidity Regulation

The ‘New Normal’ During Normal Times – Liquidity Regulation and Conventional Monetary Policy

2021 ◽  
Author(s):  
Sînziana Kroon Petrescu ◽  
Clemens Bonner ◽  
Iman <!>van Lelyveld ◽  
Jan Wrampelmeyer
Keyword(s):  
Monetary Policy ◽  
New Normal ◽  
Liquidity Regulation

scholarly journals The Costs and Benefits of Liquidity Regulations: Lessons from an Idle Monetary Policy Tool

2021 ◽  
Author(s):  
Christopher J Curfman ◽  
John Kandrac
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Costs And Benefits ◽  
High Quality ◽  
Liquid Asset ◽  
Lower Odds ◽  
Credit Supply ◽  
Policy Tool ◽  
Regression Kink Design ◽  
Liquidity Regulation

Abstract We investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a liquidity regulation. For causal inference, we use a regression kink design that relies on the variation in a marginal high-quality liquid asset requirement around an exogenous threshold. We show that mandated increases in liquidity cause banks to reduce credit supply. Liquidity requirements also depress banks’ profitability, though some of the regulatory costs are passed on to liability holders. We document a prudential benefit of liquidity requirements by showing that banks subject to a higher requirement just before the financial crisis had lower odds of failure.

scholarly journals The Effects of Liquidity Regulation on Bank Demand in Monetary Policy Operations

2020 ◽  
pp. 100860
Author(s):  
Marcelo Rezende ◽  
Mary-Frances Styczynski ◽  
Cindy M. Vojtech
Keyword(s):  
Monetary Policy ◽  
Liquidity Regulation

scholarly journals The Effects of Liquidity Regulation on Bank Demand in Monetary Policy Operations

2016 ◽  
Vol 2016 (090) ◽  
Author(s):  
Marcelo Rezende ◽  
◽  
Mary-Frances Styczynski ◽  
Cindy M. Vojtech ◽  
◽  
...  
Keyword(s):  
Monetary Policy ◽  
Liquidity Regulation
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