Arbeitspapier

Shock propagation and banking structure

We conjecture that lenders' decisions to provide liquidity are affected by the extent to which they internalize negative spillovers. We show that lenders with a large share of loans outstanding in an industry provide liquidity to industries in distress when spillovers are expected to be strong, because fire sales are likely to ensue. Lenders with a large share of outstanding loans also provide liquidity to customers and suppliers of industries in distress, especially when the disruption of supply chains is expected to be costly. Our results suggest a novel channel explaining why credit concentration may favor financial stability.

Sprache
Englisch

Erschienen in
Series: Sveriges Riksbank Working Paper Series ; No. 348

Klassifikation
Wirtschaft
Macroeconomics: Production
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
Financial Institutions and Services: General
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Transactional Relationships; Contracts and Reputation; Networks
Thema
syndicated loans
bank concentration
supply chains
fire sales
externalities

Ereignis
Geistige Schöpfung
(wer)
Giannetti, Mariassunta
Saidi, Farzad
Ereignis
Veröffentlichung
(wer)
Sveriges Riksbank
(wo)
Stockholm
(wann)
2017

Handle
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Giannetti, Mariassunta
  • Saidi, Farzad
  • Sveriges Riksbank

Entstanden

  • 2017

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