Fire-Sale Vulnerabilities of Banks: Bank-Specific Risks under Stress and Credit Drawdowns

Chaehee Shin and Maddie White
Additional contact information
Chaehee Shin: https://www.federalreserve.gov/econres/chaehee-shin.htm

No 2020-10-08, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: One channel of shock propagation in the financial system is fire-sale-driven spillover that can take place through asset fire sales and the resulting effect of depressed asset prices on the value of firms' assets. Heightened leverage then induces firms to de-lever, triggering another round of asset fire sales.

Date: 2020-10-08
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.federalreserve.gov//econres/notes/feds ... awdowns-20201008.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2020-10-08

DOI: 10.17016/2380-7172.2589

Access Statistics for this paper

More papers in FEDS Notes from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ; Keisha Fournillier ().