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Keywords:Bank liquidity 

Speech
Ending too big to fail

Remarks at the Global Economic Policy Forum, New York City.
Speech , Paper 123

Speech
Five years since the crisis: where are we now?

Remarks at the Institute of International Bankers' Seminar on Risk Management and Regulatory/Examinations Compliance Issues.
Speech , Paper 120

Working Paper
Investor Demands for Safety, Bank Capital, and Liquidity Measurement

We construct a model of a bank's optimal funding choice, where the bank negotiates with both safety-driven short-term bondholders and (mostly) risk-taking long-term bondholders. We establish that investor demands for safety create a negative relationship between the bank's capital choices and short-term funding, as well as negative relationships between capital and common measures of bank liquidity. Consistent with our model, our bank-level empirical analysis of these capital-liquidity tradeoffs show (1) that bank liquidity measures have a strong and negative relationship to its capital ratio ...
Finance and Economics Discussion Series , Paper 2020-079

Speech
A new era of bank supervision

Remarks at the New York Bankers Association Financial Services Forum, New York City.
Speech , Paper 65

Journal Article
An economic analysis of liquidity-saving mechanisms

A recent innovation in large-value payments systems has been the design and implementation of liquidity-saving mechanisms (LSMs), tools used in conjunction with real-time gross settlement (RTGS) systems. LSMs give system participants, such as banks, an option not offered by RTGS alone: they can queue their outgoing payments. Queued payments are released if some prespecified event occurs. LSMs can reduce the amount of central bank balances necessary to operate a payments system as well as quicken settlement. This article analyzes the performance of RTGS systems with and without the addition of ...
Economic Policy Review , Volume 14 , Issue Sep , Pages 25-39

Report
Federal Reserve liquidity provision during the financial crisis of 2007-2009

This paper examines the Federal Reserve's unprecedented liquidity provision during the financial crisis of 2007-2009. It first reviews how the Fed provides liquidity in normal times. It then explains how the Fed's new and expanded liquidity facilities were intended to enable the central bank to fulfill its traditional lender-of-last-resort role during the crisis while mitigating stigma, broadening the set of institutions with access to liquidity, and increasing the flexibility with which institutions could tap such liquidity. The paper then assesses the growing empirical literature on the ...
Staff Reports , Paper 563

Conference Paper
On the role of bank coalitions in the provision of liquidity

Proceedings , Paper 590

Conference Paper
Empirical evidence on the need for a lender of last resort

Proceedings , Paper 674

Journal Article
Liquidity effects of the events of September 11, 2001

Banks rely heavily on incoming payments from other banks to fund their own payments. The terrorist attacks of September 11, 2001, destroyed facilities in Lower Manhattan, leaving some banks unable to send payments through the Federal Reserve's Fedwire payments system. As a result, many banks received fewer payments than expected, causing unexpected shortfalls in banks' liquidity. These disruptions also made it harder for banks to redistribute balances across the banking system in a timely manner. In this article, the authors measure the payments responses of banks to the receipt of payments ...
Economic Policy Review , Volume 8 , Issue Nov , Pages 59-79

Conference Paper
Banking and commerce: an approach based on liquidity synergies

Proceedings , Paper 610

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Dudley, William 7 items

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