Bank Networks and Systemic Risk: Evidence from the National Banking Acts

• 成果类型: Article
• 署名作者: Anderson, Haelim; Paddrik, Mark; Wang, Jessie Jiaxu
• 署名单位: Federal Deposit Insurance Corporation (FDIC); Office of Financial Research; United States Department of the Treasury; Arizona State University; Arizona State University-Tempe
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20161661
• 发表日期: 2019
• 页码: 3125-3161
• 关键词: Liquidity provision; UNITED-STATES; contagion; panics; equilibrium; suspensions; MODEL

摘要

The National Banking Acts (NBAs) of 1863-1864 established rules governing the amounts and locations of interbank deposits, thereby reshaping the bank networks. Using unique data on bank balance sheets and detailed interbank deposits in 1862 and 1867 in Pennsylvania, we study how the NBAs changed the network structure and quantify the effect on financial stability in an interbank network model. We find that the NBAs induced a concentration of interbank deposits at both the city and bank levels, creating systemically important banks. Although the concentration facilitated diversification, contagion would have become more likely when financial center banks faced large shocks.