The Federal Reserve's Discount Window and TAF Programs: "Pushing on a String?"

Allen N. Berger, Lamont K. Black, Christa H. S. Bouwman and Jennifer Dlugosz
Additional contact information
Allen N. Berger: University of SC and University of PA
Lamont K. Black: DePaul University
Christa H. S. Bouwman: Case Western Reserve University and University of PA
Jennifer Dlugosz: Washington University in St Louis

Working Papers from University of Pennsylvania, Wharton School, Weiss Center

Abstract: The Federal Reserve injected unprecedented liquidity into banks during the crisis using the discount window and Term Auction Facility. We examine these facilities' use and effectiveness. We find: small bank users were generally weak, large bank users were not; the funds substituted to a limited degree for other funds; these facilities increased aggregate lending which would have decreased in their absence. The funds enhanced lending of expanding banks and reduced the decline at contracting banks. Small banks increased small-firm lending, while large banks enhanced large-firm lending. Loan quality only improved at small banks, while both left loan contract terms unchanged.

JEL-codes: E58 G21 G28 (search for similar items in EconPapers)
Date: 2014-04
New Economics Papers: this item is included in nep-ban, nep-cba, nep-ger, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://fic.wharton.upenn.edu/fic/papers/14/p1406.htm
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://fic.wharton.upenn.edu/fic/papers/14/p1406.htm [301 Moved Permanently]--> https://wifpr.wharton.upenn.edu/fic/papers/14/p1406.htm)

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:ecl:upafin:14-06

Access Statistics for this paper

More papers in Working Papers from University of Pennsylvania, Wharton School, Weiss Center Contact information at EDIRC.
Bibliographic data for series maintained by ().