- Out-of-Stock
Version numérique PDF
Banks transform liquid deposits into illiquid loans, and in this transformation liquidity is created. Banks are not only intermediaries between depositors and borrowers, but are also central to monetary creation. As a result of the financial crisis of 2008, the role of banks as liquidity creators has gained renewed interest in the literature. The new Basel III regulatory framework affects the classical banking model in the sense that it requires additional capital, but it also obliges banks to switch to a long-term funding model. To adapt to the new regulation, several strategies have been adopted by banks, one of which is to reduce the volume of loans, especially when the new regulation significantly increases the level of capital required. In this article, we present the effects of the new Basel III regulatory framework on liquidity creation, and we show that there is no consensus among researchers on the question of what the impact of the new regulation will be on liquidity creation by the banking sector.Keywords: Liquidity Creation; Banks; Basel III.JEL Codes: G21; G28.Auteurs :Bancel Franck
Extrait de la revue BMI 143
BMI143-1129007
New
16 other products in the same category:
Availability: Out of stock
- Risk-Based and Factor Investing
- Expected Credit Loss vs. Credit Value Adjustment: A Comparative Analysis
- Analyst Earnings Forecasts, Individual Investors’ Expectations and Trading Volume
- Changing Dynamic Relationships between Stock and Bond Markets in Crises
- Do Regulatory and Supervisory Reforms Affect European Bank Stability
Availability: Out of stock
Sommaire
Articles
- Relationships between Trading Volume, Stock Returns and Volatility: Evidence from the French Stock Market
- Violating United Nations Global Compact Principles: An Event Study
- Investigating a Fund Return Distribution when the Value of the Fund under Management is Irregularly Observed
- Intergenerational Risk Trading and the Innovative Role of Equity- Wage Swaps
Availability: Out of stock
Sommaire
Articles
- Purchasing an Annuity: Now or Later? The Role of Interest Rates
- Does Corporate Social Performance Really Improve Corporate Financial Performance?
- Does the Market Value the Social Dimension? International Evidence
- When Financial Derivatives can be Applied to the Real Economy – The Case of Exotic Options in Corporate Finance
Availability: Out of stock
Availability: Out of stock
Sommaire
Articles
- Short-term Impacts of the 2004 Indian Ocean Tsunami on Stock Markets: A DCC-GARCH Analysis
- Equity Option Listing and Underlying Market Quality: Evidence from a Price Duration Model
- Does the Catering Theory of Dividend Apply to the French Listed Firms?
