Scarce collateral and bank reserves
نویسندگان
چکیده
منابع مشابه
Bank capital, liquid reserves, and insolvency risk∗
We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks’ insolvency risk. The model features endogenous capital structure, liquid asset holdings, payout, and default decisions. In the model, banks face taxation, flotation costs of securities, and default costs. They are financed with equity, insured deposits, and risky debt. Using the model, we show that...
متن کاملScarce collateral, the term premium, and quantitative easing
A model of money, credit, and banking is constructed in which the differential pledgeability of collateral and the scarcity of collateralizable wealth lead to a term premium —an upward-sloping nominal yield curve. Purchases of long-maturity government debt by the central bank are always a good idea, but for unconventional reasons. A floor system is always welfare improving, as it gives the cent...
متن کاملRetail Sweep Programs and Bank Reserves , 1994 - 1999
In January 1994, the Federal Reserve Board permitted a commercial bank to begin using a new type of computer software that dynamically reclassifies balances in its customer accounts from transaction deposits to a type of personal-saving deposit, the money market deposit account (MMDA).1 This reclassification reduces the bank’s statutory required reserves while leaving unchanged its customers’ p...
متن کاملappendix to : Bank capital , liquid reserves , and insolvency risk ∗
A The auxiliary problem 1 A.1. Notation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 A.2. Immediate liquidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 A.3. Value of a barrier strategy . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A.4. The optimal barrier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 A.5. Verification . . . . ...
متن کاملSupplementary appendix to : Bank capital , liquid reserves , and insolvency risk
A The auxiliary problem 1 A.1 Notation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 A.2 Immediate liquidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 A.3 Value of a barrier strategy . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A.4 The optimal barrier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 A.5 Verification . . . . . . ....
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ژورنال
عنوان ژورنال: Journal of Macroeconomics
سال: 2008
ISSN: 0164-0704
DOI: 10.1016/j.jmacro.2008.06.002