Discussion of “Systemic Risk and the Solvency-Liquidity Nexus of Banks”
Federal Reserve Bank of New York – Discussion of “Systemic Risk and the Solvency-Liquidity Nexus of Banks” April 2015 Number 722 Tobias Adrian “Pierret (2015) presents empirical analysis of the solvency-liquidity nexus for the banking system, documenting that a shock to the level of banks’ solvency risk is followed by lower short-term debt. Conversely, higher short-term …