Similar Search Results

Moreira, Alan - 2014

collateral is scarce. We call this process shadow banking. A rise in uncertainty raises demand for crash-proof liquidity, forcing … intermediaries to delever and substitute toward safe, collateral- intensive liabilities. Shadow banking shrinks, causing the … liquidity supply to contract, discount rates and collateral premia spike, prices and investment fall. The model produces slow …

Persistent link: https://www.econbiz.de/10012458332

Loans for the "Little Fellow : " Credit, Crisis, and Recovery in the Great Depression

Quincy, Sarah - National Bureau of Economic Research - 2023

This paper identifies how bank branching benefited local economies during the Great Depression. Using archival data and narrative evidence, I show how Bank of America's branch network in 1930s California created an internal capital market to diversify away local liquidity shortfalls, allowing it...

Persistent link: https://www.econbiz.de/10014421204

Bank Branch Density and Bank Runs

Benmelech, Efraim; Yang, Jun; Zator, Michal - National Bureau of Economic Research - 2023

Bank branch density, defined as the number of bank branches to total deposits, has significantly declined over the past decade, fueled by a confluence of branch closings and the almost doubling of deposits between 2016 and 2022. During this period, banks with low branch density benefited from...

Persistent link: https://www.econbiz.de/10014322849

Bank Runs, Fragility, and Regulation

Amador, Manuel; Bianchi, Javier - National Bureau of Economic Research - 2024

-ante optimal: individual banks do not internalize that higher leverage makes other banks more vulnerable. The theory calls for …

Persistent link: https://www.econbiz.de/10014528381

Loose Monetary Policy and Financial Instability

Grimm, Maximilian; Jordà, Òscar; Schularick, Moritz; … - National Bureau of Economic Research - 2023

Do periods of persistently loose monetary policy increase financial fragility and the likelihood of a financial crisis? This is a central question for policymakers, yet the literature does not provide systematic empirical evidence about this link at the aggregate level. In this paper we fill...

Persistent link: https://www.econbiz.de/10014226155

Anatomy of a Financial Crisis

Mishkin, Frederic S. - 1991

This paper provides an asymmetric information framework for understanding the nature of financial crises. It provides the following precise definition of a financial crisis: A financial crisis is a disruption to financial markets in which adverse selection and moral hazard problems become much...

Persistent link: https://www.econbiz.de/10012475050

How do Financial Crises Redistribute Risk?

Mitchener, Kris; Vossmeyer, Angela - National Bureau of Economic Research - 2023

We examine how financial crises redistribute risk, employing novel empirical methods and micro data from the largest financial crisis of the 20th century - the Great Depression. Using balance-sheet and systemic risk measures at the bank level, we build an econometric model with incidental...

Persistent link: https://www.econbiz.de/10014337771

Interbank Networks and the Interregional Transmission of Financial Crises : Evidence from the Panic of 1907

Jaremski, Matthew S.; Wheelock, David C. - National Bureau of Economic Research - 2023

This paper provides quantitative evidence on interbank transmission of financial distress in the Panic of 1907 and ensuing recession. Originating in New York City, the panic led to payment suspensions and emergency currency issuance in many cities. Data on the universe of interbank connections...

Persistent link: https://www.econbiz.de/10014287370

Modeling the Great Recession as a Bank Panic : Challenges

Christiano, Lawrence; Dalgic, Hüsnü; Li, Xiaoming - National Bureau of Economic Research - 2022

We consider bank panic models in which, depending on the configuration of fundamentals, there can be a positive probability of a bank panic. A crucial assumption in these models is that new equity cannot enter in a panic. We quantify the importance of this assumption by computing the minimal...

Persistent link: https://www.econbiz.de/10013191050

Unintended Consequences of LOLR Facilities : The Case of Illiquid Leverage

Acharya, Viral V. - 2013

Several mechanisms that might address this unintended consequence of LOLR facili--ties are explored: condition LOLR access and terms on the financial health of borrowers; condition LOLR access and terms on asset sales and deleveraging; and, especially, in--stead of supporting troubled financial...

Persistent link: https://www.econbiz.de/10012458890

1
2
3
4
5
6
7
8
9
10
Next
Last