Banks' Liability Structure and Mortgage Lending During the Financial Crisis / / Jihad Dagher, Kazim Kazimov

• Autore: Dagher Jihad
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2012
• Descrizione fisica: 1 online resource (45 p.)
• Soggetto topico: Liquidity (Economics); Banks and banking - United States; Banks and Banking; Macroeconomics; Money and Monetary Policy; Industries: Financial Services; Real Estate; Financial Crises; Banks; Depository Institutions; Micro Finance Institutions; Mortgages; Monetary Policy, Central Banking, and the Supply of Money and Credit: General; Personal Income, Wealth, and Their Distributions; Housing Supply and Markets; Banking; Finance; Monetary economics; Property & real estate; Personal income; Loans; Credit; Financial institutions; National accounts; Money; Housing prices; Prices; Banks and banking; Income; Housing
• Soggetto geografico: United States
• Altri autori: KazimovKazim
• Note generali: Description based upon print version of record.
• Nota di contenuto: 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 Elasticity ; 6. 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 Appendix
• Sommario/riassunto: We 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.
• Titolo autorizzato: Banks' Liability Structure and Mortgage Lending During the Financial Crisis
• ISBN: 1-4755-0641-4; 1-4755-3462-0
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910785526603321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2012/155