From Wall Street to Main Street: The Impact of the Financial Crisis on Consumer Credit Supply

• 成果类型: Article
• 署名作者: Ramcharan, Rodney; Verani, Stephane; Van den Heuvel, Skander J.
• 署名单位: University of Southern California; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12209
• 发表日期: 2016
• 页码: 1323-1356
• 关键词: Fire sales; liquidity; shocks; banking

摘要

HOW DID THE COLLAPSE of the asset-backed securities (ABS) market during the 2007 to 2009 financial crisis affect the supply of credit to the broader economy? Using new data on the U.S. credit union industry, we find that ABS-related losses are associated with a large contraction in the supply of credit to consumers, especially among those credit unions that began the crisis with weaker capitalization. We also find that this credit supply shock restricted the availability of mortgage and automobile credit. These results show how movements in the prices of financial assets can affect the real economy.