Liquidity risk management and credit supply in the financial crisis

• 成果类型: Article
• 署名作者: Cornett, Marcia Millon; McNutt, Jamie John; Strahan, Philip E.; Tehranian, Hassan
• 署名单位: Boston College; Bentley University; Southern Illinois University System; Southern Illinois University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2011.03.001
• 发表日期: 2011
• 页码: 297-312
• 关键词: financial institutions; liquidity risk; Financial crisis

摘要

Liquidity dried up during the financial crisis of 2007-2009. Banks that relied more heavily on core deposit and equity capital financing, which are stable sources of financing, continued to lend relative to other banks. Banks that held more illiquid assets on their balance sheets, in contrast, increased asset liquidity and reduced lending. Off-balance sheet liquidity risk materialized on the balance sheet and constrained new credit origination as increased takedown demand displaced lending capacity. We conclude that efforts to manage the liquidity crisis by banks led to a decline in credit supply. (C) 2011 Elsevier B.V. All rights reserved.