Search Results

Showing results 1 to 3 of approximately 3.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Term Auction Facility 

Report
The effect of the Term Auction Facility on the London inter-bank offered rate

The Term Auction Facility (TAF), the first auction-based liquidity initiative by the Federal Reserve during the global financial crisis, was aimed at improving conditions in the dollar money market and bringing down the significantly elevated London interbank offered rate (Libor). The effectiveness of this innovative policy tool is crucial for understanding the role of the central bank in financial stability, but academic studies disagree on the empirical evidence of the TAF effect on Libor. We show that the disagreement arises from misspecifications of econometric models. Regressions using ...
Staff Reports , Paper 335

Report
Discount window stigma during the 2007-2008 financial crisis

We provide empirical evidence for the existence, magnitude, and economic cost of stigma associated with banks borrowing from the Federal Reserve?s Discount Window (DW) during the 2007-08 financial crisis. We find that banks were willing to pay a premium of around 44 basis points across funding sources (126 basis points after the bankruptcy of Lehman Brothers) to avoid borrowing from the DW. DW stigma is economically relevant as it increased some banks? borrowing cost by 32 basis points of their pre-tax return on assets (ROA) during the crisis. The implications of our results for the provision ...
Staff Reports , Paper 483

Discussion Paper
Did the Fed’s Term Auction Facility Work?

The Federal Reserve introduced the Term Auction Facility (TAF) in December 2007 to provide term loans to banks during the recent financial crisis. In this post, we report on the effectiveness of the TAF during the early stages of the crisis. We find that the TAF was associated with a decrease in the “liquidity premium,” one component of a bank’s borrowing cost. In other words, the TAF worked as intended.
Liberty Street Economics , Paper 20111011

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

Sarkar, Asani 3 items

McAndrews, James J. 2 items

Wang, Zhenyu 2 items

Armantier, Olivier 1 items

Ghysels, Eric 1 items

Shrader, Jeffrey 1 items

show more (1)

FILTER BY Jel Classification

G1 1 items

G10 1 items

G12 1 items

G18 1 items

G19 1 items

G2 1 items

show more (3)

FILTER BY Keywords

Term Auction Facility 3 items

Libor 2 items

crisis 2 items

Discount Window 1 items

Federal Reserve 1 items

liquidity 1 items

show more (6)

PREVIOUS / NEXT