Can I read Liquidity Rules and Credit Booms on EtoBox?
Liquidity Rules and Credit Booms by astoneinthemountain is a document available to read on EtoBox.
What is Liquidity Rules and Credit Booms about?
This paper explores how liquidity regulation can inadvertently lead to credit booms due to interbank market power, where smaller banks engage in shadow banking to circumvent regulations. The authors model a scenario where banks differ in their liquidity and pricing power, resulting in a reallocation of funding that increases credit availability despite stricter regulations. The findings are applied to China
- Author
- astoneinthemountain
- Language
- EN