Systemic liquidity risk: a European approach

Authors
Publication date 25-10-2011
Journal VOX : Research-based Policy Analysis and Commentary from leading Economists
Volume | Issue number 2011 | 25 October
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
Abstract How should financial regulators address problems stemming from liquidity risk? This column argues that the liquidity coverage and net funding ratios proposed for Basel III are economically and politically impractical. It recommends using those ratios as long-term targets while imposing ‘prudential risk surcharges’ on deviations from the targets.

Document type Article
Language English
Published at http://www.voxeu.org/index.php?q=node/7114
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