Similar Search Results

Flight to liquidity and systemic bank runs

Robatto, Roberto - 2017

This paper presents a general equilibrium, monetary model of bank runs to study monetary injections during financial crises. When the probability of runs is positive, depositors increase money demand and reduce deposits; at the economy-wide level, the velocity of money drops and deflation...

Persistent link: https://www.econbiz.de/10011976152

Chapter 16. Wholesale Banking and Bank Runs in Macroeconomic Modeling of Financial Crises

Gertler, M.; Kiyotaki, N.; Prestipino, A. - In: Handbook of macroeconomics : volume 2, v. 2A-2B SET, (pp. 1345-1425). 2016

There has been considerable progress in developing macroeconomic models of banking crises. However, most of this literature focuses on the retail sector where banks obtain deposits from households. In fact, the recent financial crisis that triggered the Great Recession featured a disruption of...

Persistent link: https://www.econbiz.de/10014024285

A Model of Shadow Banking

Gennaioli, Nicola - 2012

We present a model of shadow banking in which banks originate and trade loans, assemble them into diversified portfolios, and finance these portfolios externally with riskless debt. In this model: outside investor wealth drives the demand for riskless debt and indirectly for securitization, bank...

Persistent link: https://www.econbiz.de/10013106906

When Shadows Grow Longer : Shadow Banking with Endogenous Entry

Ari, Anil - 2016

Why did the shadow banking sectors in the US and the euro area expand in the decade before the financial crisis and what are the implications for systemic risk and macro-prudential policy? This paper examines these issues with a model of the financial sector where the size of the shadow banking...

Persistent link: https://www.econbiz.de/10012984394

Financial stability policies and bank lending : quasi-experimental evidence from Federal Reserve interventions in 1920-21

Rieder, Kilian - 2020

I estimate the comparative causal effects of monetary policy "leaning against the wind" (LAW) and macroprudential policy on bank-level lending and leverage by drawing on a single natural experiment. In 1920, when U.S. monetary policy was still decentralized, four Federal Reserve Banks...

Persistent link: https://www.econbiz.de/10012318753

Monetary policy under subjective beliefs of banks: optimal central bank collateral requirements

Böser, Florian - 2021 - This version: June 29, 2021

bank's choice of collateral standards in its lending facilities. Optimism on the side of banks, entailing a higher … collateral value of bank loans, can lead to excessive lending and bank default. Pessimism, though, can entail insufficient … lending and productivity losses. With an appropriate haircut on collateral, the central bank can perfectly neutralize the …

Persistent link: https://www.econbiz.de/10012585474

Policy Uncertainty, Lender of Last Resort and the Real Economy

Jasova, Martina - 2020

We show that a reduction in lender of last resort (LOLR) policy uncertainty positively affects bank lending and propagates to investment and employment. We exploit a unique policy that reduced uncertainty regarding the availability of future LOLR funding for banks as a quasi-natural experiment....

Persistent link: https://www.econbiz.de/10012851836

Policy Uncertainty, Lender of Last Resort and the Real Economy

Jasova, Martina; Mendicino, Caterina; Supera, Dominik - 2021

Persistent link: https://www.econbiz.de/10013243814

The Impact of Crisis and Macroeconomic Variables Towards Islamic Banking Deposits

Abduh, Muhamad - 2012

Problem statement: The nature of Islamic banks is different from conventional banks which may lead to a different deposit behavior of their depositors. This study aims to analyze the dynamic effects of interest and profit rate changes, production level, inflation and financial crisis towards the...

Persistent link: https://www.econbiz.de/10013110065

Asset returns and financial fragility

Li, Yang - 2016

What configuration of asset returns will make the banking system most susceptible to a self-fulfilling run? I study this question in a version of the model of Diamond and Dybvig (1983) with limited commitment and a non-trivial portfolio choice. I show that the relationship between the returns on...

Persistent link: https://www.econbiz.de/10011444259