Liquidity risks raised crisis funding costs: Bank of Italy paper


The increase in liquidity risk during the recent crisis forced market funding rates higher, forcing the systemic response from central banks, according to a Bank of Italy paper, published on Saturday.

Antonio De Socio, the paper's author, uses the three‐month Euribor and Eonia swap spread – two benchmark market rates in the eurozone – to evaluate the effects of the financial turmoil on the interbank market. The author says after August 2007 the plumbing system that supplied banks with wholesale

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: