{"product_id":"the-daily-liquidity-effect-in-a-floor-system-von-olav-syrstad","title":"The Daily Liquidity Effect in a Floor System","description":"\u003cp\u003eThis paper analyses the liquidity effect in Norway by examining the relationship between a range of liquidity variables and five different measures of the short-term interbank premium. In a floor system the key policy rate is equal to banks¿ deposit rate in the central bank, and as such, this analysis provides new information on the liquidity effect in a floor system. Both excess liquidity (total central bank reserves in the banking system) and structural liquidity (central bank reserves in the system before Norges Banks¿ market operations) have, as expected, a negative a significant effect on almost all dependent variables. Furthermore, in periods of financial turmoil European and Norwegian banks may face higher USD rates in the interbank market either because of a general USD liquidity premium or an institution specific credit premium. My analysis provides additional insight in the division between the liquidity premium and the credit premium in a way, to my knowledge, not done in earlier literature. The results indicate that during the financial crisis (2007-2009) the liquidity premium dominated in USD as the availability of credit deteriorated.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783659398865\"\u003e\u003ch3\u003eEmpirical Evidence from the Norwegian Market\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783659398865","offer_id":39484140486749,"sku":"9783659398865","price":35.9,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/f729d41a-d02a-49a9-91a5-5d7c6661dbe3.jpg?v=1775625244","url":"https:\/\/shop.autorenwelt.de\/en\/products\/the-daily-liquidity-effect-in-a-floor-system-von-olav-syrstad","provider":"Autorenwelt Shop","version":"1.0","type":"link"}