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Government Connections and Financial Constraints: Evidence from a Large Representative Sample of Chinese Firms
Cull, Robert; Li, Wei; Sun, Bo; Xu, Lixin Colin - Federal Reserve Board (Board of Governors of the … - 2015
We examine the role of firms' government connections, defined by government intervention in CEO appointment and the status of state ownership, in determining the severity of financial constraints faced by Chinese firms. We demonstrate that government connections are associated with substantially...
Persistent link: https://www.econbiz.de/10011269077
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Why Do We Need Both Liquidity Regulations and a Lender of Last Resort? A Perspective from Federal Reserve Lending during the 2007-09 U.S. Financial Crisis
Carlson, Mark A.; Duygan-Bump, Burcu; Nelson, William R. - Federal Reserve Board (Board of Governors of the … - 2015
During the 2007-09 financial crisis, there were severe reductions in the liquidity of financial markets, runs on the … Reserve, in its role as lender of last resort (LOLR), injected extraordinary amounts of liquidity. In the aftermath, lawmakers … introduction of liquidity regulations. These changes were motivated in part by the argument that central bank lending entails …
Persistent link: https://www.econbiz.de/10011255344
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An Empirical Analysis of Futures Margin Changes: Determinants and Policy Implications
Abruzzo, Nicole; Park, Yang-Ho - Federal Reserve Board (Board of Governors of the … - 2014
Margin regulation raises two policy concerns. First, an alignment of margins to volatility can amplify procyclicality, leading to a build-up of excess leverage in good times and a forced deleverage in bad times. Second, competition among central counterparties (CCPs) can result in lower margin...
Persistent link: https://www.econbiz.de/10011075125
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Firm Entry and Employment Dynamics in the Great Recession
Siemer, Michael - Federal Reserve Board (Board of Governors of the … - 2014
The 2007-2009 recession is characterized by: a large drop in employment, an unprecedented decline in firm entry, and a slow recovery. Using confidential firm-level data, I show that financial constraints reduced employment growth in small relative to large firms by 4.8 to 10.5 percentage points....
Persistent link: https://www.econbiz.de/10010886223
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Loan Sales and Bank Liquidity Risk Management: Evidence from a U.S. Credit Register
Irani, Rustom M.; Meisenzahl, Ralf R. - Federal Reserve Board (Board of Governors of the … - 2015
We examine the impact of banks' liquidity risk management on secondary loan sales. We track the dynamics of bank loan … importance of bank liquidity risk management as a motivation for loan sales, in addition to the credit risk transfer motive … bank loans administered by U.S. regulators. We analyze the 2007-2009 financial crisis as a market-wide liquidity shock and …
Persistent link: https://www.econbiz.de/10011273699
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The Real Effects of Credit Line Drawdowns
Berrospide, Jose M.; Meisenzahl, Ralf R. - Federal Reserve Board (Board of Governors of the … - 2015
with theory, our results confirm that firms use drawdowns to sustain investment after an idiosyncratic liquidity shock … already increased in 2007, precisely when disruptions in bank funding markets began to squeeze aggregate liquidity. Consistent …. Low aggregate liquidity amplifies this effect significantly. During the financial crisis, the effect of drawdowns on …
Persistent link: https://www.econbiz.de/10011273700
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Loan Sales and Bank Liquidity Risk Management: Evidence from a U.S. Credit Register
Irani, Rustom M.; Meisenzahl, Ralf R. - Federal Reserve Board (Board of Governors of the … - 2014
We examine the impact of banks' liquidity risk management on secondary loan sales. We track the dynamics of bank loan … importance of bank liquidity risk management as a motivation for loan sales, in addition to the credit risk transfer motive … bank loans administered by U.S. regulators. We analyze the 2007-2009 financial crisis as a market-wide liquidity shock and …
Persistent link: https://www.econbiz.de/10011119862
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An agency problem in the MBS market and the solicited refinancing channel of large-scale asset purchases
Kandrac, John; Schlusche, Bernd - Federal Reserve Board (Board of Governors of the … - 2015
mortgages that underlie the MBS no longer share in the prepayment risk of the securities, thereby increasing incentives to …
Persistent link: https://www.econbiz.de/10011273692
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Assessing Targeted Macroprudential Financial Regulation: The Case of the 2006 Commercial Real Estate Guidance for Banks
Bassett, William F.; Marsh, Blake - Federal Reserve Board (Board of Governors of the … - 2014
In the mid-2000s, federal bank regulatory agencies became alarmed by steadily increasing concentrations of commercial real estate (CRE) loans at many banks, particularly loans used to finance construction and land development (CLD). In January 2006, they issued guidance that required banks with...
Persistent link: https://www.econbiz.de/10010886224
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Bank Interventions and Options-based Systemic Risk: Evidence from the Global and Euro-area Crisis
Londono, Juan M.; Tian, Mary - Federal Reserve Board (Board of Governors of the … - 2014
injection announcements on systemic risk for the banking sector in the U.S. and the euro area between 2008 and 2013. We propose … a new measure of options-based systemic risk called downside correlation risk premium (DCRP), which quantifies the … compensation investors demand for being exposed to the risk of large correlated drops in bank stock prices. DCRP is calculated …
Persistent link: https://www.econbiz.de/10010937978