Showing results 1 to 3 of approximately 3.(refine search)
The Effect of Foreign Lending on Domestic Loans : An Analysis of U.S. Global Banks
This paper examines the effect of foreign lending on the domestic lending for US global banks. We show that greater foreign loan growth complements, rather than detracts from, domestic commercial lending. Exploiting a confidential data (FFIEC 009) on international loan exposure of US banks, we estimate that a 1% increase in foreign office lending is associated with a 0.6% growth in domestic commercial lending, suggesting complementarity across these lending channels. However, when capital raising is tight during the Global Financial Crisis of 2008, we find that foreign lending did come at the ...
Small Businesses and Small Business Finance during the Financial Crisis and the Great Recession: New Evidence From the Survey of Consumer Finances
We use the Federal Reserve's 2007, 2009 re-interview of 2007 respondents, and 2010 Surveys of Consumer Finances (SCFs) to examine the experiences of small businesses owned and actively managed by households during these turbulent years. This is the first paper to use these SCFs to study small businesses even though the surveys contain extensive data on a broad cross-section of firms and their owners. We find that the vast majority of small businesses were severely affected by the financial crisis and the Great Recession, including facing tight credit constraints. We document numerous and ...
Shared Destinies? Small Banks and Small Business Consolidation
We identify a new source of bank consolidation in the United States. For decades, boththe financial and real sides of the economy have experienced considerable consolidation. Weshow that banking-sector consolidation is, in part, a consequence of real-sector consolidation;because small banks are a disproportionate source of small-business credit, they are disproportionately exposed to shocks to small-business growth. Using a Bartik instrument based onnational small-business trends and county-level industry exposure, we show that changes tothe real-side demand for small-business credit is ...