Working Paper
Close but not a central bank: The New York Clearing House and issues of clearing house loan certificates
Abstract: The paper examines the New York Clearing House (NYCH) as a lender of last resort by looking at clearing-house-loan-certificate borrowing during five banking panics of the National Banking Era (1863?1913). In that system, adequate aggregate liquidity provision was passive and dependent upon member bank borrowing. We document bank borrowing behavior using bank-level data for clearing-house loan certifi cates issued to NYCH member banks. The historical record reveals that the large New York City banks behaved in ways that resembled those of a central bank in 1884 and in 1890, but less so in the more severe crises.
Keywords: Financial crises; lenders of last resort; Clearinghouses (Banking); Interbank market;
https://doi.org/10.26509/frbc-wp-201308
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https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/working-papers/2013/wp-1308-close-but-not-a-central-bank-ny-clearing-house-issues-of-clearing-home-loan-certificates-pdf.pdf
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Provider: Federal Reserve Bank of Cleveland
Part of Series: Working Papers (Old Series)
Publication Date: 2013
Number: 1308