How Should Bank Liquidity be Regulated?

Franklin Allen and Douglas Gale ()

Chapter 11 in Achieving Financial Stability:Challenges to Prudential Regulation, 2017, pp 135-157 from World Scientific Publishing Co. Pte. Ltd.

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…

Keywords: Money and Banking; International Banking; Financial Instititions; Banks; Regulations; Compliance; Financial Crisis; Great Financial Crisis 2008; Microprudential; Macroprudential; Financial Stability (search for similar items in EconPapers)
JEL-codes: E50 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813223400_0011 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813223400_0011 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9789813223400_0011

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().