On the Interaction of Bank Liquidity and Capital (Presentation Slides)
51 Pages Posted: 14 Jan 2020
Date Written: September 6, 2019
This conference presentation summarizes research on the impact of liquidity shocks on banks' capital and vice versa. From a regulatory point of view the question is whether capital and liquidity are complements or substitutes? The empirical work reviewed here asks how will banks respond to tighter regulatory constraints? A distinction is made between small and large banks.
Keywords: Liquidity requirements, capital requirements, liquidity constraint
JEL Classification: G21, G28
Suggested Citation: Suggested Citation