Banks' Advantage in Hedging Liquidity Risk: Theory and Evidence from the Commercial Paper Market

By Evan Gatev, Philip E. Strahan. 2003

598 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/305ab1d672d9bcc4cf81df3a65e55fec223f3bde

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Citations in the corpus

Capital and liquidity ratios and financial distress. Evidence from the European banking industry (2017, background): “We also contribute to the broader literature on bank liquidity management, which builds on the works of Kashyap et al., (2002); Gatev and Strahan (2006); Gatev et al., (2009) and has recently considered whether banks advantage as liquidity providers has failed during the financial crisis (Acharya…”
Measuring Liquidity Mismatch in the Banking Sector: Measuring Liquidity Mismatch in the Banking Sector (2017, background): “We base this choice on the accepted wisdom that insured bank deposits in the US do not run in a liquidity stress episode (see Gatev and Strahan (2006)).”
Intermediary Asset Pricing (2013, background): “The differential behavior of the banking sector in 2008 is reflective of a broader pattern of reintermediation during financial downturns, as documented by Gatev and Strahan ( 2006 ) and Pennacchi ( 2006 ) .”
Bank liquidity provision across the firm size distribution (2020, unknown): “Introduction The ability of borrowers to access funds in bad times is crucial to avoiding financial distress, with banks playing a key role as liquidity providers (Kashyap et al., 2002; Gatev and Strahan, 2006).”
Banking on Deposits: Maturity Transformation without Interest Rate Risk (2018, background): “Gatev and Strahan (2006) show that banks experience inflows of deposits in times of stress, which allows them to provide more liquidity to their borrowers.”
The Relationship between Liquidity Risk and Credit Risk in Banks (2014, background): “4 Most recent works on liquidity also include Gatev and Strahan (2006), Carlett”
Deposit insurance, bank regulation, and financial system risks (2006, background): “Using recent banking and financial market data, Gatev and Strahan (2006) (hereafter, referred to as GS) present empirical evidence that supports KRS’s prediction of synergies in loan commitments and deposit taking.”
Funding Liquidity Risk: Definition and Measurement (2013, unknown): “…can act as a natural hedge against liquidity risk stemming from issuing loan commitments and lines of credit (e.g. see Kashyap et al 2002, or Gatev and Strahan, 2006).16 On the other hand, banks cannot rely on this, as they have a limited ability to actively attract new customer deposits in…”
Corporate Liquidity Management: A Conceptual Framework and Survey (2014, unknown): “A possible answer is that there are synergies between the deposit-taking and the credit line–providing roles of banks (see, e.g., Kashyap, Rajan & Stein 2002; Gatev & Strahan 2006; Gatev, Schuermann & Strahan 2007).”
Corporate immunity to the COVID-19 pandemic (2020, unknown): “Similarly, even without direct bank ownership of firms, Gatev and Strahan (2006) show that banks have a unique advantage in providing liquidity to corporations during periods of market stress.”
Liquidity Risk Management and Credit Supply in the Financial Crisis (2011, unknown): “For example, when the supply of overall market liquidity falls, borrowers turn to banks en masse to draw funds from existing credit lines (Gatev and Strahan, 2006).”