The Effects of Bank Consolidation on Risk Capital Allocation and Market Liquidity Staff Working Paper 2002-5 Chris D'Souza, Alexandra Lai This paper investigates the effects of financial market consolidation on risk capital allocation in a financial institution and the implications for market liquidity in dealership markets. We show that an increase in financial market consolidation can have ambiguous effects on liquidity in foreign exchange and government securities markets. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Financial markets JEL Code(s): G, G2, G28, G3, G31, G34
Regulation of Financial Institutions: A Functional Analysis Technical Report No. 45 John Chant This study has three main objectives: First, to examine the reasons for the existence of financial institutions that simultaneously lend to one group and borrow from another; second, to analyze the reasons for the special treatment of these institutions in terms of the regulation that governs their activities; and third, to assess the types of […] Content Type(s): Staff research, Technical reports Research Topic(s): Financial institutions JEL Code(s): G, G2, G28