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Bank intermediation and persistent liquidity effects in the presence of a frictionless bond market

Einarsson, Tor; Marquis, Milton H. - Federal Reserve Bank of San Francisco - 2000

them to fund their working capital expenses. Bank deposits are the only interest-bearing financial asset available to … households, and bank loans are the only source of working capital finance available to firms. To obtain a liquidity effect in … liquid asset position prior to the monetary shock. In practice, the capital markets are a major source of working capital …

Persistent link: https://www.econbiz.de/10011026931

Do central bank liquidity facilities affect interbank lending rates?

Christensen, Jens H. E.; Lopez, Jose A.; Rudebusch, Glenn D. - Federal Reserve Bank of San Francisco - 2009

In response to the global financial crisis that started in August 2007, central banks provided extraordinary amounts of liquidity to the financial system. To investigate the effect of central bank liquidity facilities on term interbank lending rates, we estimate a six-factor arbitrage-free model...

Persistent link: https://www.econbiz.de/10005004103

Loan officers and relationship lending to SMEs

Uchida, Hirofumi; Udell, Gregory F.; Yamori, Nobuyoshi - Federal Reserve Bank of San Francisco - 2008

Previous research suggests that loan officers play a critical role in relationship lending by producing soft information about SMEs. For the first time, we empirically confirm this hypothesis We also examine whether the role of loan officers differs from small to large banks as predicted by...

Persistent link: https://www.econbiz.de/10005712194

Do banks propagate debt market shocks?

Hale, Galina; Santos, João A. C. - Federal Reserve Bank of San Francisco - 2010

Over the years, U.S. banks have increasingly relied on the bond market to finance their business. This created the potential for a link between the bond market and the corporate sector whereby borrowers, including those that do not rely on bond funding, became exposed to the conditions in the...

Persistent link: https://www.econbiz.de/10008489223

The 2007-09 financial crisis and bank opaqueness

Flannery, Mark J.; Kwan, Simon H.; Nimalendran, … - Federal Reserve Bank of San Francisco - 2010

Doubts about the accuracy with which outside investors can assess a banking firm’s value motivate many government interventions in the banking market. The recent financial crisis has reinforced concerns about the possibility that banks are unusually opaque. Yet the empirical evidence, thus...

Persistent link: https://www.econbiz.de/10008676440

Asset class diversification and delegation of responsibilities between central banks and sovereign wealth funds

Aizenman, Joshua; Glick, Reuven - Federal Reserve Bank of San Francisco - 2010

needs, particularly in reducing the probability of sudden stops in foreign capital inflows, it will place a high weight on …

Persistent link: https://www.econbiz.de/10008676444

Bank relationships, business cycles, and financial crisis

Hale, Galina - Federal Reserve Bank of San Francisco - 2011

Recent literature argues that the structure of a banking network is important for its stability. We use network analysis to formally describe bank relationships in the global banking network between 1980 and 2009 and analyze the effects of recessions and banking crises on these relationships. We...

Persistent link: https://www.econbiz.de/10009131476

Monetary and financial integration: evidence from Portuguese borrowing patterns

Spiegel, Mark M. - Federal Reserve Bank of San Francisco - 2004

This paper examines the impact of European Monetary Union (EMU) accession on bilateral Portuguese international borrowing patterns. Using a difference-in-differences methodology, I demonstrate that Portugal’s accession to the EMU was accompanied by a change in its borrowing pattern in favor of...

Persistent link: https://www.econbiz.de/10010702152

Testing the strong-form of market discipline: the effects of public market signals on bank risk

Kwan, Simon H. - Federal Reserve Bank of San Francisco - 2004

Under the strong-form of market discipline, publicly traded banks that have constantly available public market signals from their stock (and bond) prices would take less risk than non-publicly traded banks because counterparties, borrowers, and regulators could react to adverse public market...

Persistent link: https://www.econbiz.de/10010702166

Steps toward identifying central bank policy preferences

Dennis, Richard - Federal Reserve Bank of San Francisco - 2000

This paper takes the parameters in central bank loss functions as fundamental preferences to be estimated from the data. It is these preferences (along with target values) that define the policy regime in operation and that potentially change with senior central bank appointments. Optimizing...

Persistent link: https://www.econbiz.de/10010702227