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This paper studies how structural transformation exacerbates financial crises. Using newly collected data, I document the persistent effect of credit supply shocks on local economies during the Great Depression. Cities with access to an unusually generous branching network were no different from...
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Bank branch density, defined as the number of bank branches to total deposits, has significantly declined over the past …
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This paper identifies how bank branching benefited local economies during the Great Depression. Using archival data and … narrative evidence, I show how Bank of America's branch network in 1930s California created an internal capital market to … competing banking offices. The bank's presence caused smaller city property value contractions and stronger recoveries through …
Persistent link: https://www.econbiz.de/10014421204
This paper highlights the growing significance of global bank ‘branches’ in the context of financial stability and … between ‘domestic banks’ and ‘global bank branches’. These banks have distinctive features but are intimately connected … through currency swaps. My model predicts that global bank branches amplify the effect of financial shock, which is a sudden …
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