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We demonstrate the central importance of creditors' ability to use “movable” assets as collateral (as distinct from “immovable” real estate) when borrowing from banks. Using a unique cross-country micro-level loan dataset containing loan-to-value ratios for different assets, we find that...
Persistent link: https://www.econbiz.de/10013000520
Reducing systemic liquidity risk related to seasonal swings in loan demand was one reason for the founding of the Federal Reserve System. Existing evidence on the post-Federal Reserve increase in the seasonal volatility of aggregate lending and the decrease in seasonal interest rate swings...
Persistent link: https://www.econbiz.de/10012937500
We demonstrate the central importance of creditors' ability to use movable assets as collateral (as distinct from immovable real estate) when borrowing from banks. Using a unique cross-country micro level loan data set containing loan-to-value ratios for different assets, we find that...
Persistent link: https://www.econbiz.de/10013005693
Reducing systemic liquidity risk related to seasonal swings in loan demand was one reason for the founding of the Federal Reserve System. Existing evidence on the post-Federal Reserve increase in the seasonal volatility of aggregate lending and the decrease in seasonal interest rate swings...
Persistent link: https://www.econbiz.de/10013012699
What kinds of credit substitution, if any, occur when changes to banks' minimum capital requirements induce banks to … change their supply of credit? The question is central to the new ‘macroprudential' policy regimes that have been constructed … control the supply of bank credit. Regulatory efforts to influence the aggregate supply of credit may be thwarted to some …
Persistent link: https://www.econbiz.de/10013059721