Clearinghouse loan certificates as a lender of last resort

Christopher Hoag

The North American Journal of Economics and Finance, 2018, vol. 45, issue C, 215-229

Abstract: Looking across multiple panics of the nineteenth and twentieth centuries, this paper treats borrowing of clearinghouse loan certificates as borrowing from a lender of last resort. We evaluate individual bank use of clearinghouse loan certificates in New York City using bank balance sheet data. Bank capital ratios do not predict positive net borrowing. Lower pre-panic reserve ratios increased the probability of positive net borrowing of loan certificates. Bank borrowing behavior from a lender of last resort remained relatively constant across all three crises considered.

Keywords: Bank; Lender of last resort; Clearinghouse; Loan certificates (search for similar items in EconPapers)
JEL-codes: G21 G28 N21 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:45:y:2018:i:c:p:215-229

DOI: 10.1016/j.najef.2018.03.001

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