The Library
How do banks respond to increased funding uncertainty?
Tools
Ritz, Robert A. and Walther, Ansgar (2015) How do banks respond to increased funding uncertainty? Journal of Financial Intermediation, 24 (3). pp. 386-410. doi:10.1016/j.jfi.2014.12.001 ISSN 1042-9573.
PDF
WRAP_1573263-wbs-220916-ritzwalther.pdf - Accepted Version - Requires a PDF viewer. Download (633Kb) |
Official URL: http://dx.doi.org/10.1016/j.jfi.2014.12.001
Abstract
The 2007–9 financial crisis began with increased uncertainty over funding conditions in money markets. We show that funding uncertainty can explain diverse elements of commercial banks’ behavior during the crisis, including: (i) reductions in lending volumes, balance sheets, and profitability; (ii) more intense competition for retail deposits (including deposits turning into a “loss leader”); (iii) stronger lending cuts by more highly extended banks with a smaller deposit base; (iv) weaker pass-through from changes in the central bank’s policy rate to market interest rates; and (v) a binding “zero lower bound” as well as a rationale for unconventional monetary policy.
Item Type: | Journal Article | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Subjects: | H Social Sciences > HG Finance | ||||||||||
Divisions: | Faculty of Social Sciences > Warwick Business School > Finance Group Faculty of Social Sciences > Warwick Business School |
||||||||||
Library of Congress Subject Headings (LCSH): | Global Financial Crisis, 2008-2009, Bank loans, Interbank market , Liquidity (Economics) , Loss leaders, Monetary policy | ||||||||||
Journal or Publication Title: | Journal of Financial Intermediation | ||||||||||
Publisher: | Academic Press | ||||||||||
ISSN: | 1042-9573 | ||||||||||
Official Date: | July 2015 | ||||||||||
Dates: |
|
||||||||||
Volume: | 24 | ||||||||||
Number: | 3 | ||||||||||
Page Range: | pp. 386-410 | ||||||||||
DOI: | 10.1016/j.jfi.2014.12.001 | ||||||||||
Status: | Peer Reviewed | ||||||||||
Publication Status: | Published | ||||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||||
Date of first compliant deposit: | 23 September 2016 | ||||||||||
Date of first compliant Open Access: | 23 September 2016 |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year