Banks as Liquidity Providers: an Explanation for the Co-Existence of Lending and Deposit-Taking

By Anil K. Kashyap, Raghuram G. Rajan, Jeremy C. Stein. 2002

1,521 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/c7009e7590a7ff43d13df6e8bc8a8d10b40d590b

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Citations in the corpus

Do Interbank Customer Relationships Exist? And How Did They Function in the Crisis? Learning from Italy (2012, neutral): “…this literature predicts that lenders will ensure the availability of credit to their long-time customers when they are in difficulty (e.g. Chemmanur and Fulghieri, 1994; Petersen and Rajan, 1994; Kashyap et al., 2002), or precisely in times of financial turmoil (De Mitri et al., 2010).”
The choice of corporate liquidity and corporate governance (2009, positive): “Furthermore, lines of credit can give borrowers cost advantages over holding cash, as Kashyap et al. (2002) and Gatev and Strahan (2006) show, and mitigate the agency problem by self-interested management as Boot et al. (1987), and Holmstrom and Tirole (1998) show.”
How do banks create money, and why can other firms not do the same? An explanation for the coexistence of lending and deposit-taking☆ (2014, neutral): “(Kashyap et al., 2002, p. 33f).”
Safer Ratios, Riskier Portfolios: Banks’ Response to Government Aid (2014, neutral): “We conclude our analysis of the effect of CPP on credit origination with a study of loan commitments, the main source of off-balance sheet financing, which plays a significant role in liquidity creation (Kashyap, Rajan, and Stein, 2002; Berger and Bouwman, 2009).”
Institutional Stock Trading on Loan Market Information (2011, neutral): “We exclude stand-alone revolving lines from the sample as these are typically held by banks and not institutional investors (Kashyap, Rajan, and Stein, 2002; Gatev and Strahan, 2008).20 We focus on loan amendments that result in interest rate or loan amount changes to assure that the full syndicate…”
Relationship Banking, Fragility, and the Asset-Liability Matching Problem (2007, positive): “At the very least, this will be an incremental transportation cost as in a spatial model, but it may include other costs as well, such as a perceived loss in utility for the depositor in dealing with less familiar personnel at the new bank and related psychological costs [Kim et al. (2003)]. There i”
Liquidity Risk Management and Credit Supply in the Financial Crisis (2011, neutral): “Additionally, Kashyap et al. (2002) note similarities between some off-balance-sheet (i.e., contingent) assets and on-balancesheet assets.”