Tracing the Impact of Bank Liquidity Shocks: Evidence from an Emerging Market

• 成果类型: Article
• 署名作者: Khwaja, Asim Ijaz; Mian, Atif
• 署名单位: Harvard University; University of Chicago; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.98.4.1413
• 发表日期: 2008
• 页码: 1413-1442
• 关键词: monetary-policy; credit conditions; great-depression; transmission; BEHAVIOR; CRISIS; funds; FIRMS

摘要

We examine the impact of liquidity shocks by exploiting cross-bank liquidity variation induced by unanticipated nuclear tests in Pakistan. We show that for the same firm borrowing from two different banks, its loan from the bank experiencing a 1 percent larger decline in liquidity drops by an additional 0.6 percent. While banks pass their liquidity shocks on to firms, large firms-particularly those with strong business or political ties-completely compensate this loss by additional borrowing through the credit market. Small firms are unable to do so and face large drops in overall borrowing and increased financial distress.