Effects of asset commonality among banks on interbank liquidity allocation and economic fluctuations
研究了银行通过持有共同资产间接关联如何影响银行偿付能力和经济波动，发现资产共同性虽平滑了流动性分配但加剧了经济波动，需要央行流动性支持和银行异质性监管。
This paper considers why banks connect indirectly through holding common assets and how this affects bank solvency and economic fluctuations. As investment risks rise, banks rely more on ex ante common asset holding instead of ex post interbank loans to share liquidity risks among them. While the asset commonality smooths bank liquidity allocation and maintains bank solvency, the risks are less absorbed within the banking sector; hence, the economy becomes more volatile. To enhance both bank solvency and economic efficiency, committed liquidity support by the central bank, and the regulation of bank heterogeneity are required.