Local banks, credit supply, and house prices

• 成果类型: Article
• 署名作者: Blickle, Kristian
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.07.003
• 发表日期: 2022
• 页码: 876-896
• 关键词: credit supply; Liquidity shock; house prices; Local banking; EMPLOYMENT

摘要

I study the effects of an increase in the supply of local mortgage credit on house prices by exploiting a natural experiment from Switzerland. In 2008, retail customers migrate deposits from universal banks that are suffering overseas losses to homogeneous and narrowly-local mortgage banks. Using the distance between the two types of banks as an instrument for deposit growth, I show that local mortgage banks increase mortgage lending, which correlates with subsequent house price growth in their markets. My results highlight that bank specialization plays an important role in the allocation of capital. (c) 2021 Published by Elsevier B.V.