Central Bank Liquidity Backstops, Bank Regulation, and Risk-Taking by Asset Managers

The authors thank the Department Editor Agostino Capponi. The authors have also benefited from insightful comments by two anonymous referees, Kenechukwu Anadu, Christopher Anderson, German Villegas Bauer, Nina Biljanovska, Claudio Borio, Antoine Bouveret, Stijn Claessens, Sebastian Doerr, Thomas Gehrig (discussant), Michael Gordy, Gazi Kara, Claire Labonne, Ulf Lewrick, Yi Li (discussant), Pablo Rovira Kaltwasser (discussant), Andreas Schrimpf, Hyun Song Shin, Carolyn Sissoko, Kostas Tsatsaronis, Nicholas Vause, and Dora Xia; seminar participants at the Bank for International Settlements (BIS), De Nederlandsche Bank, the Federal Reserve Bank of Boston, the Federal Reserve Board, the European Securities and Markets Authority, and the International Monetary Fund; and conference participants at European Financial Association 2023, the 2023 Office of the Comptroller of the Currency - Basel Committee on Banking Supervision (OCC-BCBS) Research Workshop, the Federal Reserve Day Ahead Conference 2022, the 2022 Annual Conference of the Financial Engineering and Banking Society, the 2022 Annual Congress of the Swiss Society of Economics and Statistics, and the 35th Australasian Finance and Banking Conference. Alessandro Barbera and Pietro Patelli provided excellent research assistance. The views expressed here are those of the authors and do not necessarily represent those of the BIS.