Banks' precautionary capital and persistent credit crunches / / Fabian Valencia ; authorized for distribution by Antonio Furtado

• Autore: Valencia Fabian
• Pubblicazione: [Washington, District of Columbia] : , : International Monetary Fund, , 2007; ©2007
• Descrizione fisica: 1 online resource (37 p.)
• Disciplina: 330.973
• Soggetto topico: Financial crises - United States - Econometric models; Bank capital - United States - Econometric models; Bank failures - United States - Econometric models; Credit - United States - Econometric models; Risk - United States - Econometric models
• Soggetto genere / forma: Electronic books.
• Altri autori: FurtadoAntonio
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Contents; I. Introduction; II. Banks and the Real Economy; III. The Model; A. The Loan Contract; B. The Bank's Optimization Problem; C. Solution; D. Risk and the Target Level of Solvency; IV. Quantitative Experiments; V. Bank Recapitalization; VI. Conclusions; Figures; 1. Bank Credit as Percentage of GDP, Selected Countries; 2. Optimal Policy Functions; 3. Target Level of Solvency; 4. Responses to a Negative Transitory Productivity Shock; 5. Responses to an Interest Rate Increase; 6. Responses to a Large Negative Shock, With and Without Recapitalization ; 7. Credit Crunch Severity and Bank Recapitalization Tables; 1. Bank's Sequence of Events; 2. Public Recapitalization Costs for Selected Crises Episodes; 3. Sensitivity Analysis to a 2-σ Productivity Shock; 4. Bank's Solvency Regions; Appendix; 8. Deposit Interest Rate; References
• Sommario/riassunto: Periods of banking distress are often followed by sizable and long-lasting contractions in bank credit. They may be explained by a declined demand by financially impaired borrowers (the conventional financial accelerator) or by lower supply by capital-constrained banks, a ""credit crunch"". This paper develops a bank model to study credit crunches and their real effects. In this model, banks maintain a precautionary level of capital that serves as a smoothing mechanism to avert disruptions in the supply of credit when hit by small shocks. However, for larger shocks, highly persistent credit
• Titolo autorizzato: Banks' precautionary capital and persistent credit crunches
• ISBN: 1-4623-5881-0; 1-4527-4907-8; 9786612841996; 1-4518-7106-6; 1-282-84199-8
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910463617903321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers