Liquidity tools mitigate risks without harming banks, analysis shows

Strictly and consistently implemented liquidity management tools can help bolster the resilience of the non-bank financial sector and safeguard broader system-wide stability by preventing localised shocks from escalating into fire-sale spirals, according to analysis from the European Central Bank (ECB). The report, prepared by Antoine Baena, Matthias Sydow and Garbrand Wiersema, highlighted that such measures […]