Interdependence of Liquidity Problems in the Financial Sector The paper analyses problems arising from the interdependence of liquidity provision in the financial system. Findings document, that liquidity shortage of minor financial players can translate into liquidity shortage for systemic relevant players, thereby putting the proper functioning of the overall financial system on the line. As contractual mechanisms to safeguard against this threat are absent in the wake of market frictions, prudent regulation and governmental provision of external liquidity is asked for in order to solve these problems

Fabricio Missio

No 103, Working Papers from Bavarian Graduate Program in Economics (BGPE)

Keywords: Illiquidity; Insolvency; Contagion (search for similar items in EconPapers)
JEL-codes: G01 G21 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011-07
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bgpe.cms.rrze.uni-erlangen.de/files/2023/0 ... Financial-Sector.pdf First version, 2011 (application/pdf)

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:bav:wpaper:103_missio

Access Statistics for this paper

More papers in Working Papers from Bavarian Graduate Program in Economics (BGPE) Contact information at EDIRC.
Bibliographic data for series maintained by Anton Barabasch ().