Speaker
Dr
Ali Termos
Description
ABSTRACT
Recent banking literature identifies two distinct sources of liquidity that banks can rely on in response to funding shocks: liquid funds on the balance sheet and securitizable loans. Using the banking data in the U.S. between 1980 and 2007, we examine how domestic banks and global banks (banks with access to international capital) differ in tapping each source of liquidity. First, we find that global banks carry a less securitizable loan portfolio than their domestic counterparts. However, liquid securities and securitizable loans are more substitutable for global than for domestic banks.
Keywords: Securitization; Monetary Policy Transmission; Bank Lending Channel; Liquidity
JEL Classification: E51,l E52, E58, G21, G28.
Primary authors
Dr
Ali Termos
Dr
Darius Martin
(Western Washington University)
