Chapter 14 - How Can Bank Executives, Financial Analysts, Researchers (including Academics and Students), and Policy Makers (including Legislators, Regulators, and Central Bankers) Use Bank Liquidity Creation Data to Their Advantages?

Abstract

This chapter shows how various parties can use the bank liquidity creation data on the book’s website (http://booksite.elsevier.com/9780128002339) to their advantages. Liquidity creation may be used by bank executives and financial analysts to assess a bank against its peers and against its own past behavior to pick an appropriate scale of liquidity creation (in dollar terms and/or relative to assets). Policy makers can use the data in designing legislation, prudential regulation, and supervision. Researchers and policy makers can use the data when investigating the effects of prudential regulation and supervision, as well as monetary policy. Researchers and policy makers can also use the data to investigate many existing and future issues in banking. The key takeaway is that the bank liquidity creation data are useful to a broad audience interested in benchmarking, research, and policy work.