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The Bank Liquidity Issues During the Subprime Crisis

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Abstract

Chiaramonte investigates banking liquidity problems during the subprime crisis of 2007–2009. The chapter focuses on the main characteristics of the banks most affected by these issues, the type of liquidity problems they faced, and how the liquidity crisis affected solvency in many financial institutions, undermining their stability. Due to the key role of liquidity shortages in determining distress in the banking sector, the chapter ends with an overview of the main studies that investigated the policies designed to prevent and manage liquidity crises.

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Correspondence to Laura Chiaramonte .

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Chiaramonte, L. (2018). The Bank Liquidity Issues During the Subprime Crisis. In: Bank Liquidity and the Global Financial Crisis. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-94400-5_3

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  • DOI: https://doi.org/10.1007/978-3-319-94400-5_3

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-94399-2

  • Online ISBN: 978-3-319-94400-5

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