The Impact of Bank Liquidity on the Post-crisis Lending:Evidence from the 2007/2008 Global Credit Crisis

• Main Authors: Chun-Wei Chen, 陳俊瑋
• Other Authors: Hsiang-Ping Tsai
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/44285736722938998837

碩士 === 元智大學 === 商學碩士班(財務金融學程) === 101 === This study takes the financial crisis of 2007/2008 as an experiment to analyze the impact of bank liquidity constraint on post-crisis lending activities. The results show that high liquidity constraint banks cut their lending amounts more in the post-crisis. Taking short-term funding and write-down loss information as the proxies for the bank’s liquidity constraint indicator, I find that short-term funding is more powerful to explain banks’ post-crisis lending pattern. Furthermore, I find that governments play a key role as liquidity providers to the market regardless of which types of liquidity constraint lenders. This study highlights the positive effects on post-crisis lending resulted from government support.