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Credit crunches from occasionally binding bank borrowing constraints

Holden, Tom D.; Levine, Paul; Swarbrick, Jonathan M. - 2017

We present a model in which banks and other financial intermediaries face both occasionally binding borrowing constraints, and costs of equity issuance. Near the steady state, these intermediaries can raise equity finance at no cost through retained earnings. However, even moderately large...

Persistent link: https://www.econbiz.de/10011719158

Credit demand versus supply channels: Experimental- and administrative-based evidence

Michelangeli, Valentina; Peydró, José-Luis; Sette, Enrico - 2021

We identify the relative importance for lending of borrower (demand) versus bank (supply) factors. We submit thousands … platform. Each application goes to all banks. We find that borrower and bank factors are equally strong in causing and … bank-level strength measure, estimated on the experimental data, determines credit supply and risk-taking to real firms. …

Persistent link: https://www.econbiz.de/10012622362

Precautionary Liquidity Shocks, Excess Reserves and Business Cycles

Bratsiotis, George J.; Theodoridis, Konstantinos - 2021

This paper identifies a precautionary banking liquidity shock via a set of sign, zero and forecast variance restrictions imposed. The shock proxies the banking sector's reluctance to lend to the real economy induced by an exogenous preference change for liquid assets. Through the lens of a DSGE...

Persistent link: https://www.econbiz.de/10012632159

Banking 2025: The Bank of the Future

Lenz, Rainer - 2015

. However, bank customers will only turn to the new business model of web-based financial intermediation if the economic …

Persistent link: https://www.econbiz.de/10010527492