assets and lending allocations fall to 22 percent. Banks with low risk tolerance or less access to liquidity are particularly …This paper empirically investigates banks' investment allocations over the recent business cycle. I identify … the pre-recession period, banks lend 38 percent of incremental deposits; however, during the downturn, banks favor liquid …

suggests that although bank lending contracted during the crisis, bond financing actually increased to make up much of the gap …

reserve requirements. We also examine the potential for balance-sheet cost frictions to distort banks' lending decisions. We … such a large quantity of bank reserves could lead to overly expansive bank lending as the economy recovers, regardless of … lending in a frictionless model of the current banking system, in which interest is paid on reserves and there are no binding …

explain, through a series of examples, why banks are currently holding so many reserves. The examples show how the quantity of …' effects on bank lending. We also argue that a large increase in bank reserves need not be inflationary, because the payment of …

two-agent financial intermediary sector within a dynamic model of the macroeconomy. Banks are financed by issuing risky … financial-sector assets. The procyclicality of the banking sector is due to its risk-based funding constraints, which give a …

households in states where payday lending is permitted, households in Georgia have bounced more checks, complained more to the … credit problems—contradicts the debt trap critique of payday lending, but is consistent with the hypothesis that payday … credit is preferable to substitutes such as the bounced-check “protection” sold by credit unions and banks or loans from …