Comment on Systemic Risk, Interbank Relations, and Liquidity Provision by the Central Bank

2000 ◽  
Vol 32 (3) ◽  
pp. 639 ◽  
Author(s):  
Arvind Krishnamurthy
Keyword(s):  
Central Bank ◽  
Systemic Risk ◽  
Liquidity Provision

scholarly journals Systemic Risk, Interbank Relations, and Liquidity Provision by the Central Bank

2000 ◽  
Vol 32 (3) ◽  
pp. 611 ◽  
Author(s):  
Xavier Freixas ◽  
Bruno M. Parigi ◽  
Jean-Charles Rochet
Keyword(s):  
Central Bank ◽  
Systemic Risk ◽  
Liquidity Provision

China will press on with financial reform and opening

2018 ◽  
Keyword(s):  
United States ◽  
Emerging Markets ◽  
Central Bank ◽  
Systemic Risk ◽  
Local Governments ◽  
Financial Sector ◽  
The United States ◽  
Financial Reform ◽  
Trade Disputes ◽  
Content Type

Subject Financial reform and opening in China. Significance Despite trade disputes with the United States and risks in emerging markets, China's leaders are showing determination to open the country's financial sector further to foreign businesses. Impacts Local governments and banks will come under pressure from waves of corporate defaults, but wider panic is unlikely. Struggling enterprises will be less able to rely on debt to survive. The strong supervision of the financial sector seen in 2017 will persist as the authorities seek to reduce systemic risk. The precise timeline given by the central bank shows policymakers' confidence that risks are adequately contained.

scholarly journals Review of the Bank of Russia – NES Workshop ‘Main Challenges in Banking: Risks, Liquidity, Pricing, and Digital Currencies’

2021 ◽  
Vol 80 (4) ◽  
pp. 124-136
Author(s):  
Ivan Khotulev ◽  
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Systemic Risk ◽  
Credit Spreads ◽  
Information Flows ◽  
Real Economy ◽  
The Real ◽  
Market Participants ◽  
Central Bankers ◽  
Liquidity Pricing

In October 2021, the Bank of Russia and the New Economic School (NES) hosted a joint international online workshop titled ‘Main Challenges in Banking: Risks, Liquidity, Pricing, and Digital Currencies’. Five papers were presented. They addressed various issues in banking which are currently of paramount importance to central bankers, market participants, and academics: the connections between systemic risk and the real economy, the digitalisation of finance and information asymmetries, credit spreads and monetary policy, the improvement of information flows and outcomes in credit markets, the introduction of central bank digital currencies, and bank intermediation.

A note on liquidity policies and financial networks

2019 ◽  
Vol 11 (3) ◽  
pp. 451-456
Author(s):  
Danilo Lopomo Beteto Wegner
Keyword(s):  
Central Bank ◽  
Design Methodology ◽  
Banking System ◽  
Market Liquidity ◽  
Financial Networks ◽  
Bank Failures ◽  
Quantitative Easing ◽  
Content Type ◽  
Net Worth ◽  
Liquidity Provision

Purpose This paper aims to provides an example of how government and central bank policies that promote market liquidity (e.g., quantitative easing programs) can change the structure of the banking system. Design/methodology/approach The nexus between liquidity policies and financial networks is addressed through an example that captures stylized features of the interbank market. In the example discussed, two scenarios are considered: one with and another without central bank/government liquidity provision, leading to two different network structures that are then used to study the likelihood of contagion. Findings The example provided shows that government and central bank policies that promote market liquidity can lead to financial networks that are better capitalized (net worth of the banking system is higher) but, at the same time, more fragile (higher likelihood of bank failures). Originality/value To the best of the author’s knowledge, this is the first attempt to model the formation of a financial network with an explicit mechanism accounting for government and central bank policies that affect market liquidity, which, in turn, could be interpreted as a quantitative easing program.

Intraday Liquidity Flows within the Financial Market Infrastructures in Mexico

2016 ◽  
pp. 191-207
Author(s):  
Biliana Alexandrova-Kabadjova ◽  
Liliana Garcia-Ochoa ◽  
Ronald Heijmans ◽  
Antoaneta Serguieva
Keyword(s):  
Central Bank ◽  
Financial Market ◽  
Payment System ◽  
Payment Systems ◽  
Transaction Data ◽  
Liquidity Provision ◽  
Flow Of Funds ◽  
External Funds ◽  
Intraday Liquidity ◽  
The Impact

In this chapter, the authors present a methodology to study the flow of funds in large-value payment systems (LVPSs). The algorithm presented differentiates the flow of payments into two categories: 1) external funds, i.e. funds transferred from other financial market infrastructures (FMIs) or provided by the central bank, and 2) the reuse of incoming payments within the same FMI. Using individual transaction data, the algorithm evaluates to what extent incoming payments are used to cover obligations. The method also studies the flow of intraday liquidity under the framework of its provision within Mexican FMIs. The aim is to evaluate the impact of intraday liquidity provision, and understand how liquidity is transmitted to participants in the Mexican Large Value Payment System, or SPEI®.

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