Jun 1, 2025 · We examine the impact of organizational structure on corporate liquidity, specifically focusing on how business diversification influences firms’ choice between bank lines of credit and …

Abstract This paper reviews empirical evidence on the use of bank lines of credit as a source of corporate liquidity. Traditional explanation for lines of credit is that they provide insurance against …

profitability for a given firm decreases the bank liquidity to total liquidity ratio at the firm by 20 percent at the mean. I also decompose the ratio and show that unused bank lines of credit and cash holdings co-

Dec 9, 2022 · Our findings support the monitored liquidity insurance theory of credit lines and highlight that long-term drawdowns act as a valuable bridge financing mechanism.

Mechanism: Central bank liquidity lines provide recipient-country banks with a cheaper outside option to the FX market which improves the bargaining terms that the recipient-country banks obtain from the …

Managing funding liquidity risk and market liquidity risk is integral to the role that banks play in maturity transformation, which is, in turn, a fundamental aspect of intermediation between savers and …

Aug 31, 2009 · How do credit lines serve as liquidity sources for corporate borrowers? What conditions do banks place on using credit lines and how do those conditions affect access to credit? How do the …

Jun 1, 2022 · Despite the shorter maturity on credit lines, less active liquidity management, and higher collateral requirements, small firms nonetheless pay higher spreads than large firms.

Mar 8, 2022 · Liquidity lines between central are a key part of the international financial safety net. In this handbook chapter, we summarize their history, describe their institutional features and draw lessons …

Sep 29, 2021 · Swap and repo lines have become an integral part of the ECB’s toolkit. During the Global Crisis and the Covid-19 pandemic, the ECB announced more than 28 agreements to provide euro …