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TARP beneficiaries and their lending patterns during the financial crisis

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  • Silvio Contessi
  • Johanna L. Francis

Abstract

This paper provides a systematic analysis of the lending performance of U.S. commercial banks and savings institutions that received financial support through the Capital Purchase Program (CPP) established in October 2008. The authors combine U.S. Treasury data on recipients of the CPP with quarterly financial data for the entire population of depository institutions to reconstruct aggregate lending and gross credit flows (expansion and contraction). CPP institutions experienced a less severe lending contraction than non-CPP institutions for all types of loans and bank asset levels. The authors find no evidence of unusual reallocation of lending across depository institutions.

Suggested Citation

  • Silvio Contessi & Johanna L. Francis, 2011. "TARP beneficiaries and their lending patterns during the financial crisis," Review, Federal Reserve Bank of St. Louis, vol. 93(Mar), pages 105-126.
    • Handle: RePEc:fip:fedlrv:y:2011:i:mar:p:105-126:n:v.93no.2
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    References listed on IDEAS

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    1. Hoda S. El-Ghazaly & Yadav K. Gopalan, 2010. "A jump in consumer loans?," Economic Synopses, Federal Reserve Bank of St. Louis.
    2. Silvio Contessi & Johanna L. Francis, 2013. "U.S. Commercial Bank Lending Through 2008:Q4: New Evidence From Gross Credit Flows," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 428-444, January.
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    Cited by:

    1. Chang, Su-Hsin & Contessi, Silvio & Francis, Johanna L., 2014. "Understanding the accumulation of bank and thrift reserves during the U.S. financial crisis," Journal of Economic Dynamics and Control, Elsevier, vol. 43(C), pages 78-106.
    2. Dean F. Amel & Traci L. Mach, 2014. "The Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses," Finance and Economics Discussion Series 2014-111, Board of Governors of the Federal Reserve System (U.S.).
    3. Kleymenova, Anya & Rose, Andrew K. & Wieladek, Tomasz, 2016. "Does Government Intervention Affect Banking Globalization?," Journal of the Japanese and International Economies, Elsevier, vol. 40(C), pages 43-58.
    4. Liu, Wei & Kolari, James W. & Kyle Tippens, T. & Fraser, Donald R., 2013. "Did capital infusions enhance bank recovery from the great recession?," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 5048-5061.
    5. Dean Amel & Traci Mach, 2017. "The Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(2), pages 307-328, July.
    6. Michael Siemer, 2014. "Firm Entry and Employment Dynamics in the Great Recession," Finance and Economics Discussion Series 2014-56, Board of Governors of the Federal Reserve System (U.S.).

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