The Federal Reserve injected unprecedented liquidity into banks during the recent crisis through the discount window and Term Auction Facility. We examine the use and effectiveness of these facilities. We find that recipient banks increased their lending overall, both short- and long-term, and...

I test and find supporting evidence for the precautionary motive hypothesis of liquidity hoarding for U.S. commercial banks during the recent financial crisis. I find that banks held more liquid assets in anticipation of future losses from securities write-downs. Exposure to securities losses in...

We study the severe credit crunch of finance companies (SOFOLES) in Mexico using firm-level data between 2001 and 2011. Our results provide supporting evidence for a liquidity shock in the form of restricted access to commercial bank loans, loans from other organizations and public debt markets...