Our speaker will be Roberto Pinto (Lancaster University).

He will give a talk on "Non-financial firms as liquidity providers to banks: Evidence from the unsecured money market".

Abstract: We study the liquidity provision activities by non-financial firms to banks in the short-term wholesale unsecured money market (UMM). Using transaction-level data from the ECB, we document that non-financial firms act as one of the major liquidity providers to banks in the UMM, with daily trading volume of €9 billion. Firms in the UMM lend almost half of their cash to banks mainly through call accounts and term deposits, and mainly to domestic banks. Using the Covid-19 outbreak as a shock to firms’ cash demand, we show that greater cash demand leads to greater liquidity provisions, especially for firms more resilient to the Covid-19. More resilient firms provide liquidity with longer maturities, have more lending transactions, and lend to more banks.

The talk will take place on January 11, 2024 at 12:30 pm in room D3.0.233