Financial Crisis and New Dimensions of Liquidity Risk: Rethinking Prudential Regulation and Supervision

@inproceedings{Gualandri2009FinancialCA,
  title={Financial Crisis and New Dimensions of Liquidity Risk: Rethinking Prudential Regulation and Supervision},
  author={Elisabetta Gualandri and Andrea Landi and Valeria Venturelli},
  year={2009}
}
This paper aims to stress the importance of market liquidity for the stability of the financial system, emphasizing the pivotal role played by liquidity risk in the development of the current financial crisis, pointing out the flaws of regulation and supervision and stressing the need for their reform. We first investigate the evolution of the concept of liquidity and the nexus between the transformations of financial systems and their increased vulnerability to liquidity risks. Then we focus… CONTINUE READING