Six causes of the credit crunch
Bank lending typically moves with the business cycle. In Texas from 1987 to 1992, however, bank loans declined while nonagricultural employment rose. Robert T. Clair and Paula Tucker consider this evidence of a constrained supply of bank loans, or credit crunch. ; Clair and Tucker find that multiple factors have reduced banks' willingness and ability to supply loans. The resolution of failed banks and thrifts, tightening of bank examination standards, new capital requirements, new regulations and increased enforcement of old regulations, and increased exposure to lawsuits have each had an effect. Many of these regulatory changes where made to address important economic and social goals, but their side effects, often unintended and perhaps unavoidable, have been to reduce bank lending in the short run.
Volume (Year): (1993)
Issue (Month): Sep ()
|Contact details of provider:|| Web page: http://www.dallasfed.org/|
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
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.:
- Peek, Joe & Rosengren, Eric, 1995.
"Bank regulation and the credit crunch,"
Journal of Banking & Finance,
Elsevier, vol. 19(3-4), pages 679-692, June.
- William C. Gruben & Jonathan A. Neuberger & Ronald H. Schmidt, 1990. "Imperfect information and the Community Reinvestment Act," Economic Review, Federal Reserve Bank of San Francisco, issue Sum, pages 27-46.
- Richard F. Syron, 1991. "Are we experiencing a credit crunch?," New England Economic Review, Federal Reserve Bank of Boston, issue Jul, pages 3-10.
- Gregory E. Elliehausen & John D. Wolken, 1990.
"Banking markets and the use of financial services by small and medium- sized businesses,"
160, Board of Governors of the Federal Reserve System (U.S.).
- Gregory E. Elliehausen & John D. Wolken, 1990. "Banking markets and the use of financial services by small and medium- sized businesses," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Oct, pages 801-817.
- Jerry L. Jordan, 1992. "The credit crunch: a monetarist's perspective," Proceedings 370, Federal Reserve Bank of Chicago.
- Frederick T. Furlong, 1992. "Capital regulation and bank lending," Economic Review, Federal Reserve Bank of San Francisco, pages 23-33.
- Diana Hancock & James A. Wilcox, 1992. "The effect on bank assets of business conditions and capital shortfalls," Proceedings 373, Federal Reserve Bank of Chicago.
- Raymond E. Owens & Stacey L. Schreft, 1995.
"Identifying Credit Crunches,"
Contemporary Economic Policy,
Western Economic Association International, vol. 13(2), pages 63-76, 04.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
- Katherine A. Samolyk, 1991. "A regional perspective on the credit view," Economic Review, Federal Reserve Bank of Cleveland, issue Q II, pages 27-38.
- D'Ann M. Petersen, 1992. "Will office real estate in Texas ever recover?," Southwest Economy, Federal Reserve Bank of Dallas, issue Sep, pages 6-8.
- Christine A. Pavel & Harvey Rosenblum, 1985. "Bank and nonbanks: The horse race continues," Economic Perspectives, Federal Reserve Bank of Chicago, issue May, pages 3-17.
When requesting a correction, please mention this item's handle: RePEc:fip:fedder:y:1993:i:sep:p:1-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Chapman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.