Showing 1 - 10 of 259
We study recent technological innovation in credit markets and document their role in providing information to households. We show that households value the ability to learn detailed information about their cost of credit. This function is most valued by less creditworthy households with less...
Persistent link: https://www.econbiz.de/10011709254
experience of the United States during the Great Depression, a period of intense bank distress, to conduct our analysis. We … availability as indicated by the survey. A number of scholars have posited different ways that bank distress constrained credit …. In this study, we find that bank failures had the most dominant impact, but there is also some evidence for the …
Persistent link: https://www.econbiz.de/10013118655
large U.S. banks assign to syndicated loans for regulatory capital purposes. Using internal bank data on loans that had PDs … and LGDs assigned by more than one bank, we find substantial dispersion in these parameters. Banks differ substantially in … PDs, but only a few set PDs systematically higher or lower than the median bank. However, many banks differ from the …
Persistent link: https://www.econbiz.de/10013061902
This paper presents empirical evidence on the effect of banks' financial position on credit growth using a sample of 29 OECD countries. The failure of the exogeneity assumption of explanatory variables is addressed using dynamic panel type instruments. The empirical results show that among...
Persistent link: https://www.econbiz.de/10011579142
We explore the structural drivers of bank and nonbank credit cycles using an estimated medium-scale macro model that … allows for bank and nonbank financial intermediation. We posit economy-wide aggregate and sectoral disturbances to … potentially drive bank and nonbank credit growth. We find that sectoral shocks affecting the balance sheets of entrepreneurs who …
Persistent link: https://www.econbiz.de/10012181042
We document that banks reduce supply of jumbo mortgage loans when policy uncertainty increases as measured by the timing of US gubernatorial elections in banks' headquarter states. The reduction is larger for more uncertain elections. We utilize high-frequency, geographically granular loan data...
Persistent link: https://www.econbiz.de/10012182102
In this paper, we exploit a natural experiment in which thrifts in several states witnessed an exogenous reduction in supervisory attention to assess the effect of supervision on financial institutions' willingness to take risk. We show that the affected institutions took on much more risk than...
Persistent link: https://www.econbiz.de/10011710132
, in the context of the eurozone periphery, the increase in domestic government bond holdings, the reduction of bank credit …
Persistent link: https://www.econbiz.de/10011710170
in bank capital requirements. Intuitively, higher capital requirements raise banks’ skin in the game and screening out …
Persistent link: https://www.econbiz.de/10014048731
Using confidential loan officer survey data on lending standards and internal risk ratings on loans, we document an effect of large-scale asset purchase programs (LSAPs) on lending standards and risk-taking. We exploit cross-sectional variation in banks? holdings of mortgage-backed securities to...
Persistent link: https://www.econbiz.de/10014352384