G21

Alvaro Garcia-Marin · Santiago Justel · Tim Schmidt-Eisenlohr

This paper provides a theory and evidence for why firms with higher markups extend more trade credit, focusing on a financing cost channel that is distinct from existing competition-based …

Vitaly M. Bord · Agnes Kovacs · Patrick Moran

Layer 1 — Overview Research Question. Should regulators restrict banks from proactively raising credit card limits using machine-learning algorithms, and if so, how? The paper asks: to what extent are …

David Rivero · Hugo Rodríguez Mendizábal

Layer 1: Overview This paper demonstrates that the canonical efficiency result of Diamond and Dybvig (1983) — that banks using maturity transformation can decentralize the first-best risk-sharing …

Elliot Anenberg · Tess Scharlemann · Eileen van Straelen

Overview Research Question. Does monetary policy stimulate household borrowing and consumption by enabling cash-out mortgage refinancing (“the cash-out refinance channel”), or does it …

Hanfeng Chen · Maria Elena Filippin

The paper analyzes the implications of introducing a retail central bank digital currency (CBDC) that competes with commercial bank deposits for household liquidity, in a model where banks must post …

Francesco Giovanardi · Matthias Kaldorf

Layer 1 — Overview Research Question This paper asks two related questions about the intersection of climate policy and bank capital regulation. First, can differentiated bank capital requirements — …

Kristine W. Hankins · Morteza Momeni · David Sovich

Overview Research Question. Do import tariffs affect consumer credit terms, and does focusing solely on goods prices understate tariff pass-through to consumers? The paper also asks whether vertical …

Sara G Castellanos · Diego Jiménez-Hernández · Aprajit Mahajan · Eduardo Alcaraz Prous · Enrique Seira

Layer 1 — Overview Research Question This paper asks two related questions bearing on financial inclusion policy in developing countries: (1) How effective are credit card contract term changes — …

Lee K. Davison · Carlos D. Ramirez

Overview Research question. Does deposit insurance promote financial depth by arresting the outflow of deposits from the banking system during periods of bank distress? The paper tests and quantifies …

Sergio Correia · Stephan Luck · Emil Verner

Correia, Luck, and Verner ask a foundational question in banking: why do banks fail? Specifically, they seek to adjudicate between two theoretical views — the solvency view (failures caused by …

Kirstin Hubrich · Yves S. Schüler · Daniel Waggoner

This paper investigates the role of leverage of financial institutions in amplifying the transmission of financial shocks to the macroeconomy, with particular attention to whether that amplification …

Wenhao Li · Ye Li

Crises have cleansing effects—low-quality firms face greater financial shortfalls and invest less than high-quality firms—but public credit support dampens these effects by reducing financing cost …

Rodney J. Garratt · Zhentong Lu · Phoebe Tian

This paper uses detailed transaction-level data from Canada’s new high-value payment system (HVPS) to show how participants save liquidity by strategically exploiting the gridlock resolution …

Maximilian Grimm · Òscar Jordà · Moritz Schularick · Alan M. Taylor

This paper provides the first long-run causal evidence that a persistently loose stance of monetary policy — defined as extended periods of low interest rates relative to the neutral rate — …

Camelia Minoiu · Rebecca Zarutskie · Andrei Zlate

Overview Research Question. Minoiu, Zarutskie, and Zlate ask whether participation in the Main Street Lending Program (MSLP)—a Federal Reserve emergency facility launched in mid-2020 to channel credit …

Paolo Gelain · Marco Lorusso

This paper estimates the effect of oil price fluctuations on US banking variables using a Bayesian SVAR with sign restrictions following Baumeister and Hamilton (2019). Oil market shocks that lead to …

Chenyu Shan · Dragon Yongjun Tang · Wenya Wang

Third-party loan guarantees—in which a fee-charging guarantor formally guarantees a bank loan and conducts its own due diligence on the borrower—are present in approximately 10% of Chinese bank loans …

Matthew Baron · Luc Laeven · Julien Pénasse · Yevhenii Usenko

Layer 1 — Overview Research Question This paper investigates two interrelated questions about historical banking crises: (1) whether bank losses during banking crises are primarily temporary or …

Kenan Huremović · Gabriel Jiménez · Enrique Moral-Benito · José-Luis Peydró · Fernando Vega-Redondo

This paper provides the first integrated empirical analysis of how bank credit supply shocks propagate through both the production network and the financial network simultaneously, using the universe …

José E. Gutiérrez

This paper provides a contract-theoretic rationale for the special liquidity regulation of bank credit lines—a form of lending that has received little attention in the regulatory literature despite …

ANNA GRODECKA‐MESSI · JIEYING LI · XIN ZHANG

Layer 1 — Overview Research Question This paper investigates how rising house prices affect the composition of household debt portfolios in Sweden during 2010–2014. Specifically, the authors ask …

Xiaoming Li · Zheng Liu · Yuchao Peng · Zhiwei Xu

Layer 1 — Overview Research Question This paper asks how changes in the composition (not the size) of Chinese local government debt influence bank risk-taking, credit allocation between privately …

Panagiotis Avramidis · George G. Pennacchi

Using 2001-2022 annual data on U.S. commercial and savings banks matched with county-level demographic data, this paper shows that banks operating in areas with older populations—measured by the …

IVAN LIM · JENS HAGENDORFF · SETH ARMITAGE

Using closures of U.S. bank regulatory offices between 2002 and 2013 as difference-in-differences shocks to the physical proximity between supervisors and the community banks they oversee, the paper …