Banks as Lenders of First Resort : Evidence from the COVID-19 Crisis
In March of 2020, banks faced the largest increase in liquidity demands ever observed. Firms drew funds on a massive scale from pre-existing credit lines and loan commitments in anticipation of cash flow disruptions from the economic shutdown designed to contain the COVID-19 crisis. The increase in liquidity demands was concentrated at the largest banks, who serve the largest firms. Pre-crisis financial condition did not limit banks' liquidity supply. Coincident inflows of funds to banks from both the Federal Reserve's liquidity injection programs and from depositors, along with strong pre-shock bank capital, explain why banks were able to accommodate these liquidity demands
Year of publication: |
2020
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Authors: | Li, Lei |
Other Persons: | Strahan, Philip E. (contributor) ; Zhang, Song (contributor) |
Publisher: |
[2020]: [S.l.] : SSRN |
Subject: | Coronavirus | Bankenliquidität | Bank liquidity | Finanzkrise | Financial crisis | Kreditgeschäft | Bank lending | Firmenkundengeschäft | Corporate banking | Betriebliche Liquidität | Corporate liquidity | Lockdown | Lock-down | Kredit | Credit |
Saved in:
freely available
Extent: | 1 Online-Ressource (42 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 6, 2020 erstellt |
Other identifiers: | 10.2139/ssrn.3606279 [DOI] |
Classification: | G21 - Banks; Other Depository Institutions; Mortgages |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012833489
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