Bechara, Anuar, Bernales, Alejandro, Cañón, Carlos and Garrido-Sureda, Nicolas (2024) Aggregate risk and lending decisions in the interbank market. Journal of Money, Credit and Banking. ISSN 0022-2879
Full text not available from this repository.Abstract
We introduce a novel measure of the market-wide rik of the interbank market: the total (across all banks) uncollateralized/collateralized lending volume ratio: (Formula presented.). This measure is based on the intuition that lender banks should use less (more) uncollateralized (collateralized) lending when aggregate risk increases, after controlling for banks’ features and market conditions that might affect (Formula presented.) (e.g., banks’ credit risk, cross-border inflows, supply–demand heterogeneity, and funding costs, among others). This is because collateralized loans are safer than uncollateralized ones after an interbank market-wide collapse. Actually, we show that (Formula presented.) modifies the future lending decisions and net lending holdings of individual banks.
| Item Type: | Article |
|---|---|
| Official URL: | https://onlinelibrary.wiley.com/journal/15384616 |
| Additional Information: | © 2024 The Ohio State University. |
| Divisions: | Finance |
| Subjects: | H Social Sciences > HG Finance |
| JEL classification: | E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply; Credit; Money Multipliers G - Financial Economics > G0 - General > G00 - General G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation |
| Date Deposited: | 11 Jun 2024 14:09 |
| Last Modified: | 13 Nov 2024 21:33 |
| URI: | http://eprints.lse.ac.uk/id/eprint/123846 |
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