IMF: Capital, not liquidity, limited post-crisis lending
An IMF paper published in May analyses the slowdown of lending by large US banks and finds that capital, rather than liquidity, cramped lending during the recent crisis.
The paper examines the slowdown of lending by large US banks over the period from the third quarter of 2007 to the second quarter of 2009. Researchers also looked at the factors which influenced banks' decision to hold capital and their pricing behavior. Adolfo Barajas, Ralph Chami, Thomas Cosimano, and Dalia Hakura, the paper's
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