Journal Article
A Gap in Regulation and the Looser Lending Standards that Followed
Abstract: New research highlights how disparities in the regulatory treatment of banks and shadow banking organizations before the fi nancial crisis allowed heavily-regulated bank holding companies to lend through their less-regulated subsidiaries. Doing so helped them to conserve their regulatory capital, avoid recognizing costly loan losses, and pursue riskier lending while still adhering to banking regulations.
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https://doi.org/10.26509/frbc-ec-201420
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https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/economic-commentary/2014/ec-201420-a-gap-in-regulation-and-the-looser-lending-standards-that-followed/ec-201420-a-gap-in-regulation-and-the-looser-lending-standards-that-followed-pdf.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Commentary
Publication Date: 2014
Issue: Oct
Order Number: 20