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Gross Loan Flows

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  • BEN R. CRAIG
  • JOSEPH G. HAUBRICH

Abstract

Changes in net lending hide the much larger and more variable gross lending flows. We present a series of stylized facts about gross loan flows and how they vary over time, bank size, and the business cycle. We look at both the intensive (increases and decreases) and extensive (entry and exits) margins. In contrast to the standard result with net lending, gross lending quantities respond to monetary policy.
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Suggested Citation

  • Ben R. Craig & Joseph G. Haubrich, 2013. "Gross Loan Flows," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(2-3), pages 401-421, March.
  • Handle: RePEc:mcb:jmoncb:v:45:y:2013:i:2-3:p:401-421
    DOI: jmcb.12007
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    Cited by:

    1. Natacha Valla & Beatrice Saes-Escorbiac & Muriel Tiesset, 2008. "Bank liquidity and financial stability," IFC Bulletins chapters, in: Bank for International Settlements (ed.),The IFC's contributi2827, volume 28, pages 40-47, Bank for International Settlements.
    2. Hyun, Junghwan, 2016. "Financial crises and the evolution of credit reallocation: Evidence from Korea," Economic Modelling, Elsevier, vol. 56(C), pages 25-34.
    3. Kevin E. Beaubrun-Diant & Fabien Tripier, 2015. "Search Frictions, Credit Market Liquidity and Net Interest Margin Cyclicality," Economica, London School of Economics and Political Science, vol. 82(325), pages 79-102, January.
    4. Andersson, Fredrik & Mayock, Tom, 2015. "The microdynamics of household credit use through a boom–bust cycle," Journal of Housing Economics, Elsevier, vol. 27(C), pages 22-36.
    5. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2020. "COVID-19 Is Also a Reallocation Shock," Working Papers 2020-60, Becker Friedman Institute for Research In Economics.
    6. Fabien Tripier, 2014. "A Search-Theoretic Approach to Efficient Financial Intermediation," Working Papers 2014-18, CEPII research center.
    7. Bos, J.W.B. & van Santen, P.C. & Schilp, P., 2013. "The importance of reallocation for productivity growth: Evidence from European and US banking," Research Memorandum 056, Maastricht University, Graduate School of Business and Economics (GSBE).
    8. Brand, Thomas & Isoré, Marlène & Tripier, Fabien, 2019. "Uncertainty shocks and firm creation: Search and monitoring in the credit market," Journal of Economic Dynamics and Control, Elsevier, vol. 99(C), pages 19-53.
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    10. Hyun, Junghwan & Uddin, Azad, 2016. "Heterogeneous lending behaviors and gross loan flows in developing economies," Economic Modelling, Elsevier, vol. 55(C), pages 359-372.
    11. Bart Hobijn & Boyan Jovanovic, 2001. "The Information-Technology Revolution and the Stock Market: Evidence," American Economic Review, American Economic Association, vol. 91(5), pages 1203-1220, December.
    12. Victor E. Li, 2018. "Search, Financial Market Frictions, and Monetary Transmission," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 50(8), pages 1935-1968, December.

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