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Labor market conditions and bank liquidity creation

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  • Niu, Jijun

Abstract

Analyzing a panel of US banks, we find that banks create less liquidity when labor market conditions are weak. We also find that a drop in liability-side liquidity creation is the main channel through which labor market conditions affect bank liquidity creation.

Suggested Citation

  • Niu, Jijun, 2022. "Labor market conditions and bank liquidity creation," Economics Letters, Elsevier, vol. 218(C).
    • Handle: RePEc:eee:ecolet:v:218:y:2022:i:c:s0165176522002750
    DOI: 10.1016/j.econlet.2022.110768
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    References listed on IDEAS

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    More about this item

    Keywords

    Bank; Liquidity creation; Labor market;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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