Search Results

SORT BY: PREVIOUS / NEXT
Keywords:Liquidity Coverage Ratio 

Working Paper
The Effects of Liquidity Regulation on Bank Demand in Monetary Policy Operations

We estimate the effects of the liquidity coverage ratio (LCR), a liquidity requirement for banks, on the tenders that banks submit in Term Deposit Facility operations, a Federal Reserve tool created to manage the quantity of bank reserves. We identify these effects using variation in LCR requirements across banks and a change over time that allowed term deposits to count toward the LCR. Banks subject to the LCR submit tenders more often and submit larger tenders than exempt banks when term deposits qualify for the LCR. These results suggest that liquidity regulation affects bank demand in ...
Finance and Economics Discussion Series , Paper 2016-090

Discussion Paper
Did Banks Subject to LCR Reduce Liquidity Creation?

Banks traditionally provide loans that are funded mostly by deposits and thereby create liquidity, which benefits the economy. However, since the loans are typically long-term and illiquid, whereas the deposits are short-term and liquid, this creation of liquidity entails risk for the bank because of the possibility that depositors may ?run? (that is, withdraw their deposits on short notice). To mitigate this risk, regulators implemented the liquidity coverage ratio (LCR) following the financial crisis of 2007-08, mandating banks to hold a buffer of liquid assets. A side effect ofthe ...
Liberty Street Economics , Paper 20181015

Working Paper
LCR Premium in the Federal Funds Market

We document the existence of a regulatory premium in the federal funds market related to the implementation of the Liquidity Coverage Ratio (LCR). We use difference-in-differences analysis and confidential bank level data on borrowing in the fed funds and Eurodollar markets to compare the interest rates paid by banks subject to daily reporting of their liquidity profile (daily reporters) relative to other banks. We find that, after the implementation of LCR, daily reporters paid a higher rate compared to other banks when borrowing in the fed funds market given the LCR-favorability of many of ...
Finance and Economics Discussion Series , Paper 2023-071

FILTER BY year

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

E52 2 items

G21 2 items

G28 2 items

E49 1 items

E58 1 items

G1 1 items

show more (1)

FILTER BY Keywords

Liquidity Coverage Ratio 3 items

Basel III 1 items

Eurodollars 1 items

Excess Reserves 1 items

HQLA 1 items

Monetary Policy 1 items

show more (6)

PREVIOUS / NEXT