Shocks at large banks and banking sector distress: The Banking Granular Residual

Blank, Sven; Buch, Claudia M.; Neugebauer, Katja

doi:10.1016/j.jfs.2008.12.002

Cited by 29 publications

(21 citation statements)

References 20 publications

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“…1 In a related paper, Blank et al (2009) look at the effects of shocks at large banks in Germany on the probability of distress at smaller banks and thus the transmission of shocks within the financial sector.…”

Section: Motivationmentioning

confidence: 99%

Bank-specific shocks and the real economy

Buch

Neugebauer

2011

Journal of Banking & Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractGovernment interventions into the financial system in the form of bail out operations or liquidity assistance are often justified with the systemic importance of large banks for the real economy. In this paper, we test whether idiosyncratic shocks to loan growth at large banks have effects on real GDP growth. We employ a measure of idiosyncratic shocks which follows Gabaix (2009). He shows that idiosyncratic shocks at large firms have an impact on GDP growth in the US. We apply this idea to the banking sector. We find evidence that changes in lending by large banks have a significant impact on GDP growth. This effect is mostly driven by episodes of negative loan growth rates and by the Eastern European countries in our sample.

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Section: Motivationmentioning

confidence: 99%

Bank-specific shocks and the real economy

Buch

Neugebauer

2011

Journal of Banking & Finance

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“…the bank financing condition, and KLCI represents the stock market condition. 13 The choice of variables for MAV is closest in spirit to Bangia et al (2002), Kavvathas (2001), Nickell et al (2000), Blank et al (2009) Mannasoo andMayes (2009), andKoopman et al (2009). 14 To cater for the financial crisis effect, we include three crisis dummies: the 97/98 Asian financial crisis (CRISIS denotes 1 for year 1997 and 1998, 0 otherwise), post Asian crisis (POSTCRISIS denotes 1 for year 1999 to 2006, 0 otherwise) and the US subprime crisis (SUBCRISIS denotes 1 for year 2008 and 2009).…”

Section: Methodsmentioning

confidence: 99%

Financing structure and insolvency risk exposure of Islamic banks

Abdul-Rahman

2010

Financ Mark Portf Manag

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“…Blank et al (2009) were the first to measure granular effects from banking to investigate how bank concentration affects the stability of the Ger-man banking system. Using a panel of Eastern European countries, Buch and Neugebauer (2011) find significant effects of idiosyncratic shocks to large banks on the real economy.…”

Section: Motivationmentioning

confidence: 99%

Bank-Specific Shocks and House Price Growth in the U.S.

2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The responsibility for discussion papers lies solely with the individual authors. The views expressed herein do not necessarily represent those of the IWH. The papers represent preliminary work and are circulated to encourage discussion with the authors. Citation of the discussion papers should account for their provisional character; a revised version may be available directly from the authors. This paper investigates the link between mortgage supply shocks at the banklevel and regional house price growth in the U.S. using micro-level data on mortgage markets from the Home Mortgage Disclosure Act for the 1990-2014 period. Terms of use: Documents inOur results suggest that bank-specific mortgage supply shocks indeed affect house price growth at the regional level. The larger the idiosyncratic shocks to newly issued mortgages, the stronger is house price growth. We show that the positive link between idiosyncratic mortgage shocks and regional house price growth is very robust and economically meaningful, however not very persistent since it fades out after two years.

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Shocks at large banks and banking sector distress: The Banking Granular Residual

Cited by 29 publications

References 20 publications

Bank-specific shocks and the real economy

Bank-specific shocks and the real economy

Financing structure and insolvency risk exposure of Islamic banks

Bank-Specific Shocks and House Price Growth in the U.S.

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