Bank Liquidity and the Global Financial Crisis The Causes and Implic

One of the lessons learned from the Global Financial Crisis of 2007–9 is that minimum capital requirements are a necessary but inadequate safeguard for the stability of an intermediary. Despite the high levels of capitalization of many banks before the cr

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Bank Liquidity and the Global Financial Crisis The Causes and Implications of Regulatory Reform

Laura Chiaramonte

Palgrave Macmillan Studies in Banking and Financial Institutions Series Editor Philip Molyneux University of Sharjah Sharjah, United Arab Emirates

The Palgrave Macmillan Studies in Banking and Financial Institutions series is international in orientation and includes studies of banking systems in particular countries or regions as well as contemporary themes such as Islamic Banking, Financial Exclusion, Mergers and Acquisitions, Risk Management, and IT in Banking. The books focus on research and practice and include up to date and innovative studies that cover issues which impact banking systems globally. More information about this series at http://www.palgrave.com/gp/series/14678

Laura Chiaramonte

Bank Liquidity and the Global Financial Crisis The Causes and Implications of Regulatory Reform

Laura Chiaramonte Department of Economics and Business Administration, Faculty of Economics Università Cattolica del Sacro Cuore Milan, Italy

Palgrave Macmillan Studies in Banking and Financial Institutions ISSN 2523-336X ISSN 2523-3378 (electronic) ISBN 978-3-319-94399-2 ISBN 978-3-319-94400-5  (eBook) https://doi.org/10.1007/978-3-319-94400-5 Library of Congress Control Number: 2018946155 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: Oliver Burston/Alamy Stock Photo Cover design by Laura de Grasse Printed on acid-free paper This Palgrave Macmillan imprint is published by the registered company Springer International Publishing AG part of Springer Nature The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

To the members of my family to whom I owe everything: my mother Luciana, my father Tullio, and my husband Andrea. They