Search Results

Showing results 1 to 2 of approximately 2.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Stigma 

Working Paper
Managing Stigma during a Financial Crisis

How should regulators design effective emergency lending facilities to mitigate stigma during a financial crisis? I explore this question using data from an unexpected disclosure of partial lists of banks that secretly borrowed from the lender of last resort during the Great Depression. I find evidence of stigma in that depositors withdrew more deposits from banks included on the lists in comparison with banks left off the lists. However, stigma dissipated for banks that were revealed earlier after subsequent banks were revealed. Overall, the results suggest that an emergency lending facility ...
Finance and Economics Discussion Series , Paper 2017-007

Working Paper
Liquidity from Two Lending Facilities

During financial crises, the lender of last resort (LOLR) uses lending facilities to inject critical funding into the banking sector. The facilities need to be designed in such a way that banks are not reluctant to seek assistance due to stigma and that banks with liquidity concerns are attracted rather than those prone to risk-taking and moral hazard incentives. We use an unexpected disclosure that introduced stigma at one of two similar LOLRs during the Great Depression to evaluate whether banks used LOLR assistance to improve their liquidity needs using a novel trivariate model with ...
Finance and Economics Discussion Series , Paper 2017-117

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

G01 2 items

G21 2 items

G18 1 items

G28 1 items

N22 1 items

FILTER BY Keywords

PREVIOUS / NEXT