The macroeconomic relevance of bank and nonbank credit: An exploration of U.S. data

Alexander Herman, Deniz Igan and Juan Solé

Journal of Financial Stability, 2017, vol. 32, issue C, 124-141

Abstract: This paper exploits the Financial Accounts of the United States to derive long time series of bank and nonbank credit to different sectors, and to examine the cyclical behavior of these series in relation to (i) the long-term business cycle, (ii) recessions and recoveries, and (iii) systemic financial crises. We find that bank and nonbank credit exhibit different dynamics throughout the business cycle. We also examine the role of bank and nonbank credit in the creation of financial interconnections and illustrate a method to conduct macro-financial stability assessments.

Keywords: Macro-financial linkages; Financial intermediation; Liquidity transformation; Nonbank financial institutions (search for similar items in EconPapers)
JEL-codes: E44 E52 G21 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:32:y:2017:i:c:p:124-141

DOI: 10.1016/j.jfs.2017.06.009

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