Bank liquidity and the cost of debt

Cite Embed

Since the 2007–09 crisis, tougher bank liquidity regulation has been imposed which aims to ensure banks can survive a severe funding stress. Critics of this regulation suggest that it raises the cost of maturity transformation and reduces productive lending. Rhiannon Sowerbutts discusses a bank run model with a unique equilibrium where solvent banks can fail due to illiquidity.

 

Publication

Image courtesy of the interviewee


Report Infringement

Sign-up

Leave a Reply

Your email address will not be published. Required fields are marked *

×
Many colleges and universities have institutional memberships. If you are affiliated with a subscribing institution, please access Faculti through your on-campus or proxy IP address. Alternatively, as a Guest, you have insight(s) remaining for this month. Register for free and view thousands of insights in our archive today.
Related Posts
error:

Add the Faculti Web App to your Mobile or Desktop homescreen

Install
×