On December 12, 2019, Fed in Print will introduce its new platform for discovering content. Please direct your questions to Anna Oates

Home About Latest Browse RSS Advanced Search

Board of Governors of the Federal Reserve System (US)
Finance and Economics Discussion Series
The Non-Bank Credit Cycle
Esti Kemp
Rene van Stralen
Alexandros Vardoulakis
Peter J. Wierts
Abstract

We investigate the cyclical properties of non-bank credit and its relevance for financial stability. We construct a measure of non-bank credit for a large sample of countries and find that its cyclical properties differ from those of bank credit. Non-bank credit cycles are highly correlated with bank credit cycles in some countries but not in others. Moreover, non-bank credit cycles are less synchronised than bank credit cycles across countries. Finally, non-bank credit cycles could act as a leading indicator for currency, but not for systemic banking, crises. The opposite is true for bank credit cycles. These findings highlight the value added of monitoring non-bank credit.


Download Full text
Cite this item
Esti Kemp & Rene van Stralen & Alexandros Vardoulakis & Peter J. Wierts, The Non-Bank Credit Cycle, Board of Governors of the Federal Reserve System (US), Finance and Economics Discussion Series 2018-076, 14 Nov 2018.
More from this series
JEL Classification:
Subject headings:
Keywords: Credit cycle ; Financial crisis ; Leading indicator ; Non-bank credit
DOI: 10.17016/FEDS.2018.076
For corrections, contact Ryan Wolfslayer ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal