Sebastian Doerr, Gaston Gelos and Vesa Pursiainen
Following the financial crisis of 2008–09, the Basel Committee on Banking Supervision introduced global liquidity standards to mitigate the liquidity risks arising from funding illiquid assets with short-term liabilities. In the United States, these standards resulted in the introduction of the Liquidity Coverage Ratio (LCR) requirement for large banks. The onset of liquidity regulation coincided with a dramatic increase in private credit, originated directly by non-banks and held on the balance sheets of private credit funds and business development companies. In this paper, we study the extent to which liquidity requirements contributed to the growth of private credit, a market that has grown rapidly in recent decades and has become a major source of funding for various types of firms.
Πηγή:BIS