Bank Liquidity, Interbank Markets, and Monetary Policy

• 成果类型: Article
• 署名作者: Freixas, Xavier; Martin, Antoine; Skeie, David
• 署名单位: Pompeu Fabra University; Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhr018
• 发表日期: 2011
• 页码: 2656
• 关键词: deposit insurance; panics; runs

摘要

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 market in allocating funds. We show that the central bank should lower the interbank rate when confronted with a crisis that causes a disparity in the liquidity held among banks. This suggests that the traditional tenet prescribing the separation between prudential regulation and monetary policy should be abandoned. We also show that failure to cut interest rates during a crisis erodes financial stability by increasing the risk of bank runs.