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investor wealth drives the demand for riskless debt and indirectly for securitization, ii) intermediary assets and leverage …
Persistent link: https://www.econbiz.de/10013123980
This paper shows that securitization reduces the influence of bank financial condition on loan supply. Low-cost funding … the mortgage secondary market fostered by securitization has reduced the impact of local funding shocks on credit supply …. By extension, securitization has weakened the link from bank funding conditions to credit supply in aggregate, thereby …
Persistent link: https://www.econbiz.de/10012767441
to be affected by securitization, and to different definitions of delinquency. Our results are strongest in subsamples in …
Persistent link: https://www.econbiz.de/10013039412
-rated tranches. We find, however, that banks active in securitization held more highly-rated tranches. Such a result can be …
Persistent link: https://www.econbiz.de/10013121733
Using bank-specific data on U.S. bank claims on individual foreign countries since the mid-1980s, this paper: 1) characterizes the size and portfolio diversification patterns of the U.S. banks engaging in foreign lending; and 2) econometrically explores the determinants of fluctuations in U.S....
Persistent link: https://www.econbiz.de/10012787752
The sensitivity of the main global liquidity components, international loan and bond flows, to global factors varied considerably over the past decade. The estimated sensitivity to US monetary policy rose substantially in the immediate aftermath of the Global Financial Crisis, peaked around the...
Persistent link: https://www.econbiz.de/10012952502
Foreign banks' lending to firms in emerging market economies (EMEs) is large and denominated predominantly in U.S. dollars. This creates a direct connection between U.S. monetary policy and EME credit cycles. We estimate that over a typical U.S. monetary easing cycle, EME borrowers experience a...
Persistent link: https://www.econbiz.de/10012909113
Conventional wisdom suggests that small businesses are innovative engines of Schumpetarian growth. However, as small businesses, they are likely to face credit rationing in financial markets. If true then policies that promote lending to small businesses may yield substantial economy-wide...
Persistent link: https://www.econbiz.de/10013046172
While the balance sheet structure of U.S. banks influences how they respond to liquidity risks, the mechanisms for the effects on and consequences for lending vary widely across banks. We demonstrate fundamental differences across banks without foreign affiliates versus those with foreign...
Persistent link: https://www.econbiz.de/10013224887
We test three hypotheses regarding changes in supervisory toughness' and their effects on bank lending. The data provide modest support for all three hypotheses that there was an increase in toughness during the credit crunch period (1989-1992), that there was a decline in toughness during the...
Persistent link: https://www.econbiz.de/10013146938