Bericht
The rationale for central bank liquidity insurance and liquidity regulation
One of the core functions of a central bank is to provide liquidity insurance, often termed the lender of last resort (LLR) function. During and after the Great Financial Crisis (GFC) in 2007-09 central banks' role as liquidity insurers evolved. In the aftermath of the crisis, regulation of liquidity risk in the financial sector has been tightened, and central bank policies are under evaluation. This survey gathers insights from the literature on how to design central bank liquidity insuring policies: What institutions to insure, how to price central bank facilities, what collateral to accept, the size of operations, the degree to which they should be on-going facilities or contingent, and the interaction of our liquidity policies with regulation. Some fundamental trade-offs are identified and discussed.
- ISBN
-
978-82-8379-142-6
- Language
-
Englisch
- Bibliographic citation
-
Series: Staff Memo ; No. 3/2020
- Classification
-
Wirtschaft
- Subject
-
Liquidity insurance
Lender of last resort
financial crisis
liquidity regulation
- Event
-
Geistige Schöpfung
- (who)
-
Søvik, Ylva
- Event
-
Veröffentlichung
- (who)
-
Norges Bank
- (where)
-
Oslo
- (when)
-
2020
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Bericht
Associated
- Søvik, Ylva
- Norges Bank
Time of origin
- 2020
Other Objects (12)
Ownership Structure and Stock Market Liquidity
Bond Liquidity at the Oslo Stock Exchange
Liquidity indicators for the Norwegian government bond market
The International Monetary System, 1844-1870: Arbitrage, Efficiency, Liquidity
On the Concavity of the Consumption Function with Liquidity Constraints
Liquidity Management System: Floor or Corridor?
Liquidity at risk: Joint stress testing of solvency and liquidity
The Information Content of Market Liquidity: An Empirical Analysis of Liquidity at the Oslo Stock Exchange?
Liquidity Management and Central Bank Strength: Bank of England Operations Reloaded, 1889-1910
The Daily Liquidity Effect in a Floor System - Empirical Evidence from the Norwegian Market
What Captures Liquidity Risk? a Comparison of Trade and Order Based Liquidity Factors
Identifying Cross-Sided Liquidity Externalities
Ownership Structure and Stock Market Liquidity
Bond Liquidity at the Oslo Stock Exchange
Liquidity indicators for the Norwegian government bond market
The International Monetary System, 1844-1870: Arbitrage, Efficiency, Liquidity
On the Concavity of the Consumption Function with Liquidity Constraints
Liquidity Management System: Floor or Corridor?
Liquidity at risk: Joint stress testing of solvency and liquidity
The Information Content of Market Liquidity: An Empirical Analysis of Liquidity at the Oslo Stock Exchange?
Liquidity Management and Central Bank Strength: Bank of England Operations Reloaded, 1889-1910
The Daily Liquidity Effect in a Floor System - Empirical Evidence from the Norwegian Market
What Captures Liquidity Risk? a Comparison of Trade and Order Based Liquidity Factors
Identifying Cross-Sided Liquidity Externalities
Ownership Structure and Stock Market Liquidity
Bond Liquidity at the Oslo Stock Exchange
Liquidity indicators for the Norwegian government bond market
The International Monetary System, 1844-1870: Arbitrage, Efficiency, Liquidity
On the Concavity of the Consumption Function with Liquidity Constraints
Liquidity Management System: Floor or Corridor?
Liquidity at risk: Joint stress testing of solvency and liquidity
The Information Content of Market Liquidity: An Empirical Analysis of Liquidity at the Oslo Stock Exchange?
Liquidity Management and Central Bank Strength: Bank of England Operations Reloaded, 1889-1910
The Daily Liquidity Effect in a Floor System - Empirical Evidence from the Norwegian Market
What Captures Liquidity Risk? a Comparison of Trade and Order Based Liquidity Factors