Eisenbach, Thomas M.; Kovner, Anna - 2021 - Revised May 2021
network. We estimate that the impairment of any of the five most active U.S. banks will result in significant spillovers to … other banks, with 38 percent of the network affected on average. The impact varies and can be larger on particular days and … in geographies with concentrated banking markets. When banks respond to uncertainty by liquidity hoarding, the potential …
