---
title: Banking Regulations and Liquidity Risk
url: https://www.ml-quant.com/papers/ssrn/5097938/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5097938
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5097938
featured: 2025-01-23
citations: unknown
topic: Trading, Microstructure & Execution
---


# Banking Regulations and Liquidity Risk

The research examines the positive effect of banking regulations on liquidity risk and financial stability in the European banking sector.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5097938
- Identifier: SSRN 5097938
- Released: 2025-01-15
- First featured: Quant Letter No. 83 (2025-01-23): https://www.ml-quant.com/issues/2025-01-23/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution

## Related

- [Increasing Systemic Resilience to Socioeconomic Challenges: Modeling the Dynamics of Liquidity Flows and Systemic Risks Using Navier–Stokes Equations](https://www.ml-quant.com/papers/doi/10-61093-sec-9-2-92-113-2025/): A new mathematical model based on the Navier-Stokes equations accurately describes liquidity dynamics and systemic risk in economic systems, providing a strong framework for predicting crises and planning countercyclical policies.
- [Price-mediated contagion with endogenous market liquidity](https://www.ml-quant.com/papers/arxiv/2311.05977/): The study presents a framework to understand price-mediated contagion in a system with endogenously determined market liquidity, showing the significant impact on system risk.
- [Trading Strategies in Markets](https://www.ml-quant.com/papers/repec/agh-journl-v-25-y-2024-i-2-p-117-131/): The article examines the potential and risks of money market trading in the Swiss banking sector, considering the impact of Basel III on cash trading and outlining the necessary skills for money market traders.
- [Liquidity Risk in Bank Failures](https://www.ml-quant.com/papers/ssrn/5260010/): The article examines the failures of Silicon Valley Bank and Credit Suisse, advocating for a revision of current liquidity risk metrics to better reflect the pace and size of stress outflows in modern banking.
- [Liquidity Flows Bank-Affiliated Broker Dealers](https://www.ml-quant.com/papers/ssrn/5287025/): The paper studies the function of repo lending within the same bank holding company, discovering that internal liquidity channels aid in distributing liquidity from high-reserve banks to the broader financial system.
- [ECBs Impact](https://www.ml-quant.com/papers/ssrn/4913034/): The research uses a GVAR model to study the effects of the European Central Bank's unconventional monetary policies on six Central and Eastern European countries, showing that these policies reduce liquidity spread and raise yield spread, suggesting increased economic activity and a preference for bonds among investors.
