Liquidity Risk Management and Credit Supply in the Financial Crisis

By Marcia Millon Cornett, Jamie John McNutt, Philip E. Strahan, Hassan Tehranian. 2011

1,154 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/9b2f54abc9dd51a1220ba992ae39b076ac2f01aa

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Citations in the corpus

The Employment Effects of Credit Market Disruptions: Firm-level Evidence from the 2008–9 Financial Crisis (2014, background): “Indeed, Cornett et al. (2011) conduct a comprehensive analysis of bank outcomes using regulatory data on a large set of commercial banks from the Federal Deposit Insurance Corporation (FDIC) Call reports, and find that variation in bank balance sheets and funding sources well explain the…”
Corporate Resilience to Banking Crises: The Roles of Trust and Trade Credit (2016, neutral): “First, when a systemic banking crisis impedes the normal bank-lending channel (Cornett, McNutt, Strahan, and Tehranian (2011)), access to trade credit could partially offset the reduction in bank loans and ameliorate the impact of the crisis on corporate proﬁts and employment (Campello, Graham, and…”
The effect of bank capital on lending: Does liquidity matter? (2017, methodology): “This prediction is consistent with other studies arguing that less liquid banks are likely to reduce loans to maintain their liquid asset holdings above a dangerously low level (Kashyap and Stein, 2000; Cornett et al., 2011, Berrospide, 2013).”
Bank Funding Structures and Risk: Evidence from the Global Financial Crisis (2012, background): “In addition, U.S. banks with more stable funding structures continued to lend relative to other banks during the global financial crisis (Cornett et al., 2010), and were less likely to fail (Bologna, 2011).”
Corporate Leverage, Debt Maturity and Credit Supply: The Role of Credit Default Swaps (2013, background): “For example, in the case of equity investors, Coval and Moskowitz (1999) find a strong bias of investment managers for local firms, possibly driven by asymmetric information between local and nonlocal investors.”
Economic uncertainty and bank risk: Evidence from emerging economies (2020, neutral): “The abundance of banks’ liquid assets helps shelter banks from adverse shocks to their stability, in line with the argument of Cornett et al. (2011). Inefficiency of banks, however, as Berger and DeYoung (1997) and many others have warned, significantly increases their fragility.”
Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks (2015, background): “The finding of this study shows that conventional risk taking behavior is negatively influenced by level of liquidity, the higher the liquidity the lower credit risk exposure, the finding is consistent to Cornett et al. (2011) who opine that high risk exposure banks would build up cash and other liq”
The role of banks in the transmission of monetary policy (2012, background): “For example, Cornett et al. (2011) and Gambacorta and Marques-Ibanez (2011) show that banks were more likely to lend during the crisis if they were well capitalized and had significant core deposits.”
Multinational banks and the global financial crisis: Weathering the perfect storm? (2014, background): “During the Great Recession, banks that relied more on short-term wholesale funding reduced domestic credit more (see Ivashina and Scharfstein 2010, Cornett et al. 2011 for the U.S.; Yorulmazer and Goldsmith-Pinkham 2010 for the UK; Iyer et al. Forthcoming for Portugal), cut cross-border credit more…”