Bank Liquidity Creation and Financial Crises book cover

Bank Liquidity Creation and Financial Crises

Bank Liquidity Creation and Financial Crises: New Perspectives delivers a consistent and logical presentation of liquidity creation, connecting regulatory measures with this novel benchmarking tool.

Authors Allen Berger and Christa Bouwman examine ways to measure liquidity creation, how much liquidity banks create in different countries, differences among five financial crises that occurred over the past three decades and normal times, the effects of monetary policy (including interest rate policy, lender of last resort, and quantitative easing), the effects of capital, the effects of regulatory interventions, and the effects of bailouts.

Readers need no advanced, specialized academic knowledge to understand the concept of liquidity creation. Narrowing the gap between the "academic world," focused on theories, and the "practitioner world," dedicated to solving real-world problems, this book offers a new tool for evaluating a bank’s performance over time and comparing it to its peer group.

Audience
Upper-division undergraduates, graduate students, and professionals worldwide working in banking, financial intermediation, and regulation, especially in respect to financial crises 

Hardbound, 320 Pages

Published: November 2015

Imprint: Academic Press

ISBN: 978-0-12-800233-9

Contents

    1. Introduction
    2. Comparing the Financial Statements of a Large Nonfinancial Firm, a Large Commercial Bank, and a Small Commercial Bank
    3. Liquidity Creation as a Measure of Bank Output versus Traditional Approaches
    4. The Identification of Financial Crises
    5. Liquidity Creation and Financial Crises
    6. Measuring Liquidity versus Illiquidity
    7. How Much Liquidity Banks Create During Normal Times and Financial Crises
    8. Do Better-Capitalized Banks Create More or Less Liquidity?
    9. What are the Other Characteristics of Banks that Create More or Less Liquidity?
    10. Do Banks that Create More Liquidity Perform Better or Worse?
    11. Do Other Government Policies and Actions Affect Bank Liquidity Creation During Normal Times and Financial Crises?
    12. How Can Bank Executives, Regulators, Policy Makers, Financial Analysts, and Researchers Use Liquidity Creation Data to Their Advantage?
    13. Where We Now Stand and the Open Research Questions

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