This paper investigates the mortgage lending of banks operating in multiple U.S. metropolitan areas during the housing …

housing market borrowers and for commercial banks in an otherwise standard DSGE model. Our crisis experiment is initiated by a … sufficient to trigger a decline in housing investment comparable to what was observed during the financial crisis. The adverse …

housing prices in the United States. We find that despite enduring the limitation of risk diversification, local banks … experience a lower performance sensitivity to housing prices than their diversified counterparts. The difference in sensitivity … between the two types of banks is pronounced in bear (but not in bull) housing markets. Further analysis shows that local …

This study investigates the mortgage lending of banks operating in multiple U.S. metropolitan areas during the housing …

of bank assets. We exploit cross-regional variation in local housing booms to study how housing demand shocks affected … the growth of the banking sector. We estimate the effect of housing demand shocks that are orthogonal to local non-housing … identify variation in local housing demand that is exogenous to local banks. We find that the housing boom had a large effect …