Scientific Research Publishing

Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=49378#.VI5zD8nQrzE Author(s) Marie-Sophie Gauvin Affiliation(s) Université de Bretagne Sud, Vannes, France . ABSTRACT The 2007-2008 crisis highlighted liquidity management troubles. We witness a real estate asset price boom during the pre-crisis period and a difficulty for banks to raise funding afterwards. Consequently, bank choices in response to the conduct of the monetary policy along the cycle can be studied. Despite usual financial accelerator, the excessive (lack of) confidence of banks in the upward (down) phase explains procyclical balance sheet movements. Moreover, the monetary policy effects on bank behaviors vary accordi...

Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=50168#.VDSjJVfHRK0 Author(s)    Thomas Stern Affiliation(s) Austrian Financial Market Authorities (FMA), Vienna/Wien, Austria . ABSTRACT During an early phase of the financial crisis (2007), many financial institutions — in spite of adequate capital levels — faced heavy difficulties because they didn’t manage their liquidity profile in a prudent manner. Suddenly the crisis reminded the respective sector on the importance of liquidity to the proper functioning of financial markets. In front of the times of crisis, asset markets were broad and deep, funding was readily available at low cost. The quick change in market conditions showed how fast liquidity can dry ...