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This paper studies the relationship between the business cycle and financial intermediation in the euro area. We establish stylized facts and study their stability during the global financial crisis and the European sovereign debt crisis. Long-term interest rates have been exceptionally high and...
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"Financial intermediaries borrow in order to lend. When credit is increasing rapidly, the traditional deposit funding (core liabilities) is supplemented with other funding (non-core liabilities). We explore the hypothesis that monetary aggregates reflect the size of non-core and core liabilities...
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strength of the bank lending channel, recent evidence shows that bank-specific characteristics can have a large impact on the … provision of credit. We show that new factors, such as changes in banks' business models and market funding patterns, had … structural changes during the period of financial crisis. Banks with weaker core capital positions, greater dependence on market …
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"We study overborrowing and financial crises in an equilibrium model of business cycles and asset prices with collateral constraints. Private agents in a decentralized competitive equilibrium do not internalize the effects of their individual borrowing plans on the market price of assets at...
Persistent link: https://www.econbiz.de/10003982651
external financing, and bank-level indicators of banking fragility. Credit booms in industrial and emerging economies show …
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