Capital requirements and rational discount window borrowing
AbstractWhen banks face capital regulations and stochastic deposit supply, their decisions to borrow at the discount window will be affected by a broader range of variables than previous theoretical and empirical studies have recognized. Moreover, those decisions can respond discontinuously to changes in market parameters and to the form of rationing rule by which the discount window is administered. Risk aversion can complicate these linkages considerably, even causing some banks to prefer a positive discount rate that may exceed the actual level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number 96-4.
Date of creation: 1996
Date of revision:
Other versions of this item:
- Shaffer, Sherrill, 1998. "Capital Requirements and Rational Discount-Window Borrowing," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 30(4), pages 849-63, November.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peristiani, Stavros, 1994.
"An empirical investigation of the determinants of discount window borrowing: a disaggregate analysis,"
Journal of Banking & Finance,
Elsevier, vol. 18(1), pages 183-197, January.
- Stavros Peristiani, 1991. "An empirical investigation of the determinants of discount window borrowing: a disaggregate analysis," Research Paper 9114, Federal Reserve Bank of New York.
- Shaffer, Sherrill, 1999.
"The discount window and credit availability,"
Journal of Banking & Finance,
Elsevier, vol. 23(9), pages 1383-1406, September.
- Frederick T. Furlong & Michael C. Keeley, 1991. "Capital regulation and bank risk-taking: a note (reprinted from Journal of Banking and Finance)," Economic Review, Federal Reserve Bank of San Francisco, issue Sum, pages 34-39.
- Sherill Shaffer, 1996.
"Viability of Traditional Banking Activities: Evidence from Shifts in Conduct and Excess Capacity,"
International Journal of the Economics of Business,
Taylor and Francis Journals, vol. 3(2), pages 125-143.
- Sherrill Shaffer, 1994. "Viability of traditional banking activities: evidence from shifts in conduct and excess capacity," Working Papers 94-11, Federal Reserve Bank of Philadelphia.
- Cosimano, Thomas F & Sheehan, Richard G, 1994. "Is the Conventional View of Discount Window Borrowing Consistent with the Behavior of Weekly Reporting Banks?," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 761-70, November.
- Timothy H. Hannan & J. Nellie Liang, 1991.
"Inferring market power from time-series data: the case of the banking firm,"
Finance and Economics Discussion Series
147, Board of Governors of the Federal Reserve System (U.S.).
- Hannan, Timothy H. & Liang, J. Nellie, 1993. "Inferring market power from time-series data : The case of the banking firm," International Journal of Industrial Organization, Elsevier, vol. 11(2), pages 205-218, June.
- Waller, Christopher J., 1990. "Administering the window : A game-theoretic model of discount-window borrowing," Journal of Monetary Economics, Elsevier, vol. 25(2), pages 273-287, March.
- Gikas A. Hardouvelis & Thierry A. Wizman, 1992. "Relative cost of capital for marginal firms over the business cycle," Quarterly Review, Federal Reserve Bank of New York, issue Aut, pages 44-58.
- Dutkowsky, Donald H., 1993. "Dynamic implicit cost and Discount Window borrowing : An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(1), pages 105-120, August.
- Mitchell, Karlyn & Pearce, Douglas K., 1992. "Discount window borrowing across federal reserve districts: Evidence under contemporaneous reserve accounting," Journal of Banking & Finance, Elsevier, vol. 16(4), pages 771-790, August.
- Sherrill Shaffer, 1990.
"A test of competition in Canadian banking,"
90-18, Federal Reserve Bank of Philadelphia.
- Jaffee, Dwight M & Modigliani, Franco, 1969. "A Theory and Test of Credit Rationing," American Economic Review, American Economic Association, vol. 59(5), pages 850-72, December.
- Shaffer, Sherrill, 1989. "Competition in the U.S. banking industry," Economics Letters, Elsevier, vol. 29(4), pages 321-323.
- Alli Nathan & Edwin H. Neave, 1989. "Competition and Contestability in Canada's Financial System: Empirical Results," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 576-94, August.
- Tobin, James, 1982. " The Commercial Banking Firm: A Simple Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 84(4), pages 495-530.
- James A. Clouse, 1994. "Recent developments in discount window policy," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Nov, pages 965-977.
- Sealey, Calvin W, Jr & Lindley, James T, 1977. "Inputs, Outputs, and a Theory of Production and Cost at Depository Financial Institutions," Journal of Finance, American Finance Association, vol. 32(4), pages 1251-66, September.
- Ann-Marie Meulendyke, 1992. "Reserve requirements and the discount window in recent decades," Quarterly Review, Federal Reserve Bank of New York, issue Aut, pages 25-43.
- Stefanelli, Valeria & Matteo, Cotugno, 2010. "An Empirical Analysis on Board Monitoring Role and Loan Portfolio Quality Measurement in Banks," MPRA Paper 29766, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Beth Paul).
If references are entirely missing, you can add them using this form.