The Concept of Bank Liquidity and Its Risk

Laura Chiaramonte ()
Additional contact information
Laura Chiaramonte: Università Cattolica del Sacro Cuore

Chapter Chapter 2 in Bank Liquidity and the Global Financial Crisis, 2018, pp 5-34 from Palgrave Macmillan

Abstract: Abstract Chiaramonte investigates the role of liquidity within the financial system. The chapter defines liquidity identifying three different types (central bank, funding and market liquidity) and their related risks. Focusing on the workings of the financial system and the role of central banks, the chapter reviews linkage between the three types of liquidity in normal and turbulent times. In light of the interdependence of financial and capital equilibrium, the chapter clarifies the relationship between liquidity and solvency, related but not interchangeable concepts. Finally, the author reviews bidirectional risk relationships, highlighting the circular pattern of cause and effect.

Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-319-94400-5_2

Ordering information: This item can be ordered from
http://www.palgrave.com/9783319944005

DOI: 10.1007/978-3-319-94400-5_2

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().