The Transmission of Liquidity Shocks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Transmission of Liquidity Shocks write by Mr.Philippe D Karam. This book was released on 2014-11-19. The Transmission of Liquidity Shocks available in PDF, EPUB and Kindle. We analyze the transmission of bank-specific liquidity shocks triggered by a credit rating downgrade through the lending channel. Using bank-level data for US Bank Holding Companies, we find that a credit rating downgrade is associated with an immediate and persistent decline in access to non-core deposits and wholesale funding, especially during the global financial crisis. This translates into a reduction in lending to households and non-financial corporates at home and abroad. The effect on domestic lending, however, is mitigated when banks (i) hold a larger buffer of liquid assets, (ii) diversify away from rating-sensitive sources of funding, and (iii) activate internal liquidity support measures. Foreign lending is significantly reduced during a crisis at home only for subsidiaries with weak funding self-sufficiency.
The Transmission of Bank Liquidity Shocks
The Transmission of Bank Liquidity Shocks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Transmission of Bank Liquidity Shocks write by H. Özlem Dursun-de Neef. This book was released on 2018. The Transmission of Bank Liquidity Shocks available in PDF, EPUB and Kindle. This paper uses the 2007-2009 financial crisis as a negative liquidity shock on banks in the US and analyzes its transmission to the real economy. The ex-ante heterogeneity in the amount of long-term debt that matured during the crisis is used to measure the variation in banks' exposure to the liquidity shock. I find that banks transmitted the liquidity shock to the real economy by reducing their loan supply. The reduction was particularly strong for real estate loans. As a result, house prices declined in the MSAs where these banks have branches. Bank capital plays a significant role in the transmission: Under-capitalized banks transmitted the liquidity shock, whereas well-capitalized banks' lending did not show any decline.
The Transmission of Liquidity Shocks
The Transmission of Liquidity Shocks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Transmission of Liquidity Shocks write by Philippe D. Karam. This book was released on 2014. The Transmission of Liquidity Shocks available in PDF, EPUB and Kindle. We analyze the transmission of bank-specific liquidity shocks triggered by a credit rating downgrade through the lending channel. Using bank-level data for US Bank Holding Companies, we find that a credit rating downgrade is associated with an immediate and persistent decline in access to non-core deposits and wholesale funding, especially during the global financial crisis. This translates into a reduction in lending to households and non-financial corporates at home and abroad. The effect on domestic lending, however, is mitigated when banks (i) hold a larger buffer of liquid assets, (ii) diversify away from rating-sensitive sources of funding, and (iii) activate internal liquidity support measures. Foreign lending is significantly reduced during a crisis at home only for subsidiaries with weak funding self-sufficiency.
Transmission of Liquidity Shocks
Transmission of Liquidity Shocks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Transmission of Liquidity Shocks write by Heiko Hesse. This book was released on 2008-08. Transmission of Liquidity Shocks available in PDF, EPUB and Kindle. We examine the linkages between market and funding liquidity pressures, as well as their interaction with solvency issues surrounding key financial institutions during the 2007 subprime crisis. A multivariate GARCH model is estimated in order to test for the transmission of liquidity shocks across U.S. financial markets. It is found that the interaction between market and funding illiquidity increases sharply during the recent period of financial turbulence, and that bank solvency becomes important.
Global Banks and International Shock Transmission
Global Banks and International Shock Transmission - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Global Banks and International Shock Transmission write by Nicola Cetorelli. This book was released on 2010-11. Global Banks and International Shock Transmission available in PDF, EPUB and Kindle. Global banks played a significant role in transmitting the 2007-09 financial crisis to emerging-market (EM) economies. The authors examine adverse liquidity shocks on main developed-country banking systems and their relationships to EM across Europe, Asia, and Latin Amer., isolating loan supply from loan demand effects. Loan supply in EM across Europe, Asia, and Latin Amer. was affected significantly through three separate channels: (1) a contraction in direct, cross-border lending by foreign banks; (2) a contraction in local lending by foreign banks¿ affiliates in EM; and (3) a contraction in loan supply by domestic banks, resulting from the funding shock to their balance sheets induced by the decline in interbank, cross-border lending. Charts and tables.
