Search Results

Showing results 1 to 2 of approximately 2.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:HQLA 

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
How Have Banks Been Managing the Composition of High-Quality Liquid Assets?

We study banks' post-crisis liquidity management. We construct time series of U.S. banks' holdings of high-quality liquid assets (HQLA) and examine how these assets have been managed in recent years to comply with the Liquidity Coverage Ratio (LCR) requirement. We find that, in becoming LCR compliant, banks initially ramped up their stock of reserve balances. However, once the requirement was met, some banks subsequently shifted the compositions of their liquid portfolios significantly. This raises the question: What drives the compositions of banks? HQLA? We show that a risk-return framework ...
Finance and Economics Discussion Series , Paper 2017-092

FILTER BY year

FILTER BY Content Type

FILTER BY Author

Ihrig, Jane E. 1 items

Kim, Edward 1 items

Kumbhat, Ashish 1 items

Roberts, Daniel 1 items

Sarkar, Asani 1 items

Shachar, Or 1 items

show more (3)

FILTER BY Jel Classification

E51 1 items

E58 1 items

G1 1 items

G21 1 items

G28 1 items

FILTER BY Keywords

HQLA 2 items

Bank balance sheets 1 items

LCR 1 items

Liquid assets 1 items

Liquidity Coverage Ratio 1 items

Liquidity management 1 items

show more (5)

PREVIOUS / NEXT