06417oam 22013574 450 991096676030332120250426110716.09781475506419147550641497814755346271475534620(CKB)2670000000234716(EBL)1606798(SSID)ssj0000941795(PQKBManifestationID)11498814(PQKBTitleCode)TC0000941795(PQKBWorkID)10964064(PQKB)10310997(Au-PeEL)EBL1606798(CaPaEBR)ebr10590648(OCoLC)795921914(IMF)WPIEE2012155(IMF)WPIEA2012155(MiAaPQ)EBC1606798WPIEA2012155(EXLCZ)99267000000023471620020129d2012 uf 0engur|n|---|||||txtccrBanks' Liability Structure and Mortgage Lending During the Financial Crisis /Jihad Dagher, Kazim Kazimov1st ed.Washington, D.C. :International Monetary Fund,2012.1 online resource (45 p.)IMF Working PapersDescription based upon print version of record.9781475504460 1475504462 9781475562835 1475562837 Cover; Contents; I. Introduction; II. Data and Summary Statistics; A. Data; B. Summary Statistics; III. Bank Lending During the Crisis; A. Empirical Strategy; B. Model Specification; C. Definition of the Crisis Period; D. Benchmark Results; E. Matching; 1. Balancing tests; 2. Regressions on the matched sub-samples; F. Demand for Credit; IV. Aggregate Supply Effects; A. Motivation and Empirical Strategy; B. Results; V. Conclusion; Figures; 1. Volume of Originations; 2. Rejection Rates; 3. TED Spread; 4. Distribution of CD/A in 2005 Across Banks; 5. House Prices and Housing Supply Elasticity6. Distribution of Average CD/A in 2005 across MSAsTables; 1. Summary Statistics; 2. Selecting the Crisis Year, 2007 vs. 2008; 3. LPM Baselines and Robustness; 4. LPM and Logit for the Matched Sample; 5. MSA Level Estimations; 6. Balancing Tests for Two Way Matching; 7. Demand for Mortgages 2005-2008; 8. Aggregate Supply 2005-2008; References; Data AppendixWe examine the impact of banks’ exposure to market liquidity shocks through wholesale funding on their supply of credit during the financial crisis in the United States. We focus on mortgage lending to minimize the impact of confounding demand factors that could potentially be large when comparing banks’ overall lending across heterogeneous categories of credit. The disaggregated data on mortgage applications that we use allows us to study the time variations in banks’ decisions to grant mortgage loans, while controlling for bank, borrower, and regional characteristics. The wealth of data also allows us to carry out matching exercises that eliminate imbalances in observable applicant characteristics between wholesale and retail banks, as well as various other robustness tests. We find that banks that were more reliant on wholesale funding curtailed their credit significantly more than retail-funded banks during the crisis. The demand for mortgage credit, on the other hand, declined evenly across wholesale and retail banks. To understand the aggregate implications of our findings, we exploit the heterogeneity in mortgage funding across U.S. Metropolitan Statistical Areas (MSAs) and find that wholesale funding was a strong and significant predictor of a sharper decline in overall mortgage credit at the MSA level.IMF Working Papers; Working Paper ;No. 2012/155Liquidity (Economics)Banks and bankingUnited StatesBankingimfBanks and BankingimfBanks and bankingimfBanksimfCreditimfDepository InstitutionsimfFinanceimfFinancial CrisesimfFinancial institutionsimfHousing pricesimfHousing Supply and MarketsimfHousingimfIncomeimfIndustries: Financial ServicesimfLoansimfMacroeconomicsimfMicro Finance InstitutionsimfMonetary economicsimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfMoney and Monetary PolicyimfMoneyimfMortgagesimfNational accountsimfPersonal incomeimfPersonal Income, Wealth, and Their DistributionsimfPricesimfProperty & real estateimfReal EstateimfUnited StatesimfLiquidity (Economics)Banks and bankingBankingBanks and BankingBanks and bankingBanksCreditDepository InstitutionsFinanceFinancial CrisesFinancial institutionsHousing pricesHousing Supply and MarketsHousingIncomeIndustries: Financial ServicesLoansMacroeconomicsMicro Finance InstitutionsMonetary economicsMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralMoney and Monetary PolicyMoneyMortgagesNational accountsPersonal incomePersonal Income, Wealth, and Their DistributionsPricesProperty & real estateReal Estate300Dagher Jihad1816208Kazimov Kazim1816209International Monetary Fund.DcWaIMFBOOK9910966760303321Banks' Liability Structure and Mortgage Lending During the Financial Crisis4372005UNINA