June 2024: A Framework for Systemwide Liquidity Analysis
IMF Working Paper by Xiaodan Ding, Dimitrios Laliotis & Priscilla Toffano The authors developed a novel Systemwide Liquidity (SWL) framework to identify liquidity stress in the system that goes beyond banks and to assess the role played by non-bank financial institutions (NBFIs) in episodes of liquidity stress. The framework, which complements standard liquidity and interconnectedness[…]