Financial crises have occurred for many centuries. They are often preceded by a credit
boom and a rise in real estate and other asset prices, as in the current crisis. They are also …

We analyse the impact of standard and non-standard monetary policy on bank profitability.
We use both proprietary and commercial data on individual euro area bank balance-sheets …

This paper surveys the theoretical and empirical literature on the macroeconomic
implications of financial imperfections. It focuses on two major channels through which …

We identify the international credit channel by exploiting Mexican supervisory data sets and
foreign monetary policy shocks in a country with a large presence of European and US …

We examine the importance of liquidity hoarding and counterparty risk in the US overnight
interbank market during the financial crisis of 2008. Our findings suggest that counterparty …

We study the liquidity demand of large settlement banks in the UK and its effect on the
money markets before and during the subprime crisis of 2007–08. We find that the liquidity …

We develop a model of interbank lending and borrowing with counterparty risk. The model
has two key ingredients. First, liquidity in the banking sector is endogenous, so there is an …

We develop a simple model of the interbank market where banks trade a long term, safe
asset. When there is a lack of opportunities for banks to hedge idiosyncratic and aggregate …

We study interbank lending and asset sales markets in which banks with surplus liquidity
have market power vis-à-vis banks needing liquidity, frictions arise in lending due to moral …

A lesson of the recent financial crisis is that the interbank market is crucial for banks facing
uncertainty regarding their liquidity needs. This article studies the efficiency of the interbank …