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U.S. Commercial Bank Lending through 2008:Q4: New Evidence from Gross Credit Flows

Author

Listed:
  • Silvio Contessi

    (Federal Reserve Bank of St. Louis)

  • Johanna Francis

    (Fordham University, Department of Economics)

Abstract

What was hiding behind the aggregate commercial bank loans through the end of 2008? We use balance sheet data for every insured U.S. commercial bank from 1999:Q1 to 2008:Q4 to construct credit expansion and credit contraction series and provide new evidence on changes in lending. Until 2008:Q3 net credit growth was not dissimilar to the 1980 and 2001 recessions. However, between the third and fourth quarter credit contraction grew larger than credit expansion across all types of loans and for the largest banks. With the inclusion of 2008:Q4 data our series most resemble the intensification of the Savings and Loan crisis.

Suggested Citation

  • Silvio Contessi & Johanna Francis, 2009. "U.S. Commercial Bank Lending through 2008:Q4: New Evidence from Gross Credit Flows," Fordham Economics Discussion Paper Series dp2009-04, Fordham University, Department of Economics.
    • Handle: RePEc:frd:wpaper:dp2009-04
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. Florian, David & Francis, Johanna L., 2016. "Unemployment and Gross Credit Flows in a New Keynesian Framework," Working Papers 2016-007, Banco Central de Reserva del Perú.
    3. Gern, Klaus-Jürgen & Jannsen, Nils, 2009. "Do we face a credit crunch?," Kiel Policy Brief 15, Kiel Institute for the World Economy (IfW Kiel).
    4. Amit Ghosh & Salvador Contreras, 2022. "Local Banking Market Frictions and Youth Crime: Evidence from Bank Failures," Journal of Financial Services Research, Springer;Western Finance Association, vol. 61(1), pages 43-75, February.
    5. Emanuele Ciola & EDOARDO GAFFEO & Mauro Gallegati, 2018. "Matching frictions, credit reallocation and macroeconomic activity: how harmful are financial crises?," DEM Working Papers 2018/05, Department of Economics and Management.
    6. Fabio Panetta & Thomas Faeh & Giuseppe Grande & Corrinne Ho & Michael R King & Aviram Levy & Federico M Signoretti & Marco Taboga & Andrea Zaghini, 2009. "An assessment of financial sector rescue programmes," BIS Papers, Bank for International Settlements, number 48.
    7. Broz, Tanja & Ridzak, Tomislav, 2017. "Lending activity and credit supply in Croatia during the crisis," Journal of Policy Modeling, Elsevier, vol. 39(6), pages 1102-1116.
    8. Giuseppe CICCARONE & Francesco GIULI & Danilo LIBERATI, 2010. "Gross and net loan flows under search and matching frictions in labour and credit markets," EcoMod2010 259600040, EcoMod.
    9. Andrea F. Presbitero & Gregory F. Udell & Alberto Zazzaro, 2014. "The Home Bias and the Credit Crunch: A Regional Perspective," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(s1), pages 53-85, February.
    10. Silvio Contessi & Li Li & Katheryn N. Russ, 2013. "Bank vs. bond financing over the business cycle," Economic Synopses, Federal Reserve Bank of St. Louis.
    11. Saibal Ghosh, 2010. "Credit Growth, Bank Soundness and Financial Fragility," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(1), pages 69-98, March.
    12. Boysen-Hogrefe, Jens & Gern, Klaus-Jürgen & Jannsen, Nils & Scheide, Joachim, 2009. "Weltwirtschaft expandiert wieder," Open Access Publications from Kiel Institute for the World Economy 32956, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    Keywords

    Credit Market; Reallocation; Aggregate Restructuring; Business Cycle; Financial crisis;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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