Banks, Shadow Banks, and Business Cycles
نویسندگان
چکیده
Credit spreads on household and business loans move in lockstep spike every recession. We propose a theory as to why banks tighten their lending standards following drop market sentiment. The key feature is procyclical shadow banking sector that shifts risk from traditional investors through securitisation. fit the model euro‑area data find sentiment shocks are main driver of financial cycles over past two decades.
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3785559