EconPapers    
Economics at your fingertips  
 

Within-Bank Spillovers of Real Estate Shocks

Vicente Cuñat (), Dragana Cvijanović and Kathy Yuan

Review of Corporate Finance Studies, 2018, vol. 7, issue 2, 157-193

Abstract: By considering banks as portfolios of assets in different locations, we study how real estate shocks are transmitted across bank’s business areas, while controlling for local demand shocks and bank location-specific factors. Affected banks substantially alter their loan portfolios: we find evidence of real estate price declines affecting both real estate and non-real-estate types of lending. Banks also roll over and fail to liquidate problematic loans, while accumulating more nonperforming loans. These results provide evidence of internal contagion in real estate shocks within banks.Received December 4, 2017; editorial decision February 16, 2018 by Editor Gregor Matvos. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/rcfs/cfy001 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Within-bank spillovers of real estate shocks (2018) Downloads
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:oup:rcorpf:v:7:y:2018:i:2:p:157-193.

Access Statistics for this article

Review of Corporate Finance Studies is currently edited by Paolo Fulghieri

More articles in Review of Corporate Finance Studies from Oxford University Press
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2021-09-16
Handle: RePEc:oup:rcorpf:v:7:y:2018:i:2:p:157-193.