Crises, Liquidity Shocks, and Fire Sales at Investment Banks

2013 ◽  
Author(s):  
Nicole M. Boyson ◽  
Jean Helwege ◽  
Jan Jindra
Keyword(s):  
Investment Banks ◽  
Liquidity Shocks ◽  
Fire Sales

Endogenous Asset Fire Sales and Bank Lending Incentives

2020 ◽  
Vol 10 (04) ◽  
pp. 2150002
Author(s):  
Zhongzhi Song
Keyword(s):  
Cash Holdings ◽  
Bank Lending ◽  
Bank Loans ◽  
Policy Implications ◽  
Liquidity Shocks ◽  
Fire Sales ◽  
The 2008 Financial Crisis ◽  
Lending Decisions ◽  
The Impact ◽  
Capital Injections

This paper examines the impact of banks’ lending incentives on asset prices and bank cash holdings under liquidity risk. Banks make lending decisions based on the tradeoff between costs (fire sales of illiquid assets) and benefits (high returns from bank loans). This paper shows fire sales of assets can be an endogenous outcome, even if banks are endowed with enough cash to meet liquidity shocks. This paper also helps explain why banks have kept a large amount of cash without lending after government capital injections in the 2008 financial crisis. The model further provides policy implications for government intervention.

Crises, Liquidity Shocks, and Fire Sales at Hedge Funds

2012 ◽  
Author(s):  
Nicole M. Boyson ◽  
Jean Helwege ◽  
Jan Jindra
Keyword(s):  
Hedge Funds ◽  
Liquidity Shocks ◽  
Fire Sales

Crises, Liquidity Shocks, and Fire Sales at Commercial Banks

2012 ◽  
Author(s):  
Nicole M. Boyson ◽  
Jean Helwege ◽  
Jan Jindra
Keyword(s):  
Commercial Banks ◽  
Liquidity Shocks ◽  
Fire Sales

Crises, Liquidity Shocks, and Fire Sales at Commercial Banks

2014 ◽  
Vol 43 (4) ◽  
pp. 857-884 ◽  
Author(s):  
Nicole Boyson ◽  
Jean Helwege ◽  
Jan Jindra
Keyword(s):  
Commercial Banks ◽  
Liquidity Shocks ◽  
Fire Sales
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