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1–10 of 14 collapsed search results for liquidity

RBA Glossary definition for liquidity

liquidity – The capacity to sell an asset quickly without significantly affecting the price of that asset. Liquidity is also sometimes used to refer to assets that are highly liquid.

Search Results

Emergency Liquidity Injections

10 Oct 2019 RDP 2019-10
Nicholas Garvin
The model features an endogenous banking crisis, funding and market liquidity interactions, and fire sale externalities. ... This reduces banks' losses on illiquid securities without incentivising more liquidity risk-taking.
https://www.rba.gov.au/publications/rdp/2019/2019-10.html

Appendix A: Emergency Liquidity Injection Policies in Europe and the United States

9 Oct 2019 RDP 2019-10
Nicholas Garvin
US authorities also injected substantial liquidity using unsecured debt subsidisation and bank equity purchases. ... the money market investor funding facility (MMIFF), targeted at liquidity problems in the money market fund sector.
https://www.rba.gov.au/publications/rdp/2019/2019-10/appendix-a.html

The Model

9 Oct 2019 RDP 2019-10
Nicholas Garvin
RDP 2019-10: Emergency Liquidity Injections 2. The Model. Nicholas Garvin. October 2019. ... Banks' other non-marketable assets are treated as outside this liquidity management decision.
https://www.rba.gov.au/publications/rdp/2019/2019-10/the-model.html

Liquidity Injection through Secured Lending

9 Oct 2019 RDP 2019-10
Nicholas Garvin
This means that the avoided losses from improved market liquidity are not positively related to ex ante securities holdings. ... means 1 – m less liquidity that can be drawn from the securities market.
https://www.rba.gov.au/publications/rdp/2019/2019-10/liquidity-injection-through-secured-lending.html

Liquidity Support through Securities Purchases

9 Oct 2019 RDP 2019-10
Nicholas Garvin
b. >. b. S. 1. Therefore, banks have incentives to raise their liquidity risk-taking to levels of. ... Only the highest equilibrium is time consistent for the authority, because the authority will concede to liquidity risk levels above.
https://www.rba.gov.au/publications/rdp/2019/2019-10/liquidity-support-through-securities-purchases.html

Liquidity Injection through Unsecured Lending

9 Oct 2019 RDP 2019-10
Nicholas Garvin
e. i. (. b. ). (. 1. r. u. ). ]. f. (. b. ). d. b. subject to the liquidity constraint. ... u. , ensures that Equation (12) binds. Accordingly, bank i's liquidity raised through securities has three cases:.
https://www.rba.gov.au/publications/rdp/2019/2019-10/liquidity-injection-through-unsecured-lending.html

Conclusion

9 Oct 2019 RDP 2019-10
Nicholas Garvin
Download the Paper 2,094. KB. This paper models a liquidity crisis in the banking system and compares different types of emergency liquidity injections. ... Under either lending policy, banks' incentive to take liquidity risk is decreasing in the
https://www.rba.gov.au/publications/rdp/2019/2019-10/conclusion.html

Emergency Liquidity Injections

1 Oct 2019 RDP 2019-10
Nicholas Garvin
Research Discussion Paper – RDP 2019-10 Emergency Liquidity Injections. Nicholas Garvin.
https://www.rba.gov.au/publications/rdp/2019/2019-10/sections.html

References

9 Oct 2019 RDP 2019-10
Nicholas Garvin
Brunnermeier MK (2009), ‘Deciphering the Liquidity and Credit Crunch 2007–2008’, The Journal of Economic Perspectives, 23(1), pp 77–100. ... Fontaine J-S and R Garcia (2012), ‘Bond Liquidity Premia’, The Review of Financial Studies, 25(4), pp
https://www.rba.gov.au/publications/rdp/2019/2019-10/references.html

Emergency Liquidity Injections

1 Oct 2019 RDP 2019-10
Nicholas Garvin
Banks' other non-marketable assets are treated as outside this liquidity management decision. ... means 1 – m less liquidity that can be drawn from the securities market.
https://www.rba.gov.au/publications/rdp/2019/2019-10/full.html