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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. We compare these results with the output from a simple stochastic search model.

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  • Ben R. Craig & Joseph G. Haubrich, 2006. "Gross loan flows," Working Papers (Old Series) 0604, Federal Reserve Bank of Cleveland.
  • Handle: RePEc:fip:fedcwp:0604
    DOI: 10.26509/frbc-wp-200604
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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. Florian, David & Francis, Johanna, 2019. "Lending frictions and nominal rigidities: Implications for credit reallocation and TFP," Working Papers 2019-002, Banco Central de Reserva del Perú.
    3. Bianco, Timothy, 2021. "Monetary policy and credit flows," Journal of Macroeconomics, Elsevier, vol. 70(C).
    4. Hyun, Junghwan, 2016. "Financial crises and the evolution of credit reallocation: Evidence from Korea," Economic Modelling, Elsevier, vol. 56(C), pages 25-34.
    5. 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.
    6. 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.
    7. Hyun, Junghwan, 2018. "The dynamics of credit reallocation: South Korea's post-crisis experience," Japan and the World Economy, Elsevier, vol. 48(C), pages 57-70.
    8. Florian, David & Francis, Johanna L., 2016. "Unemployment and Gross Credit Flows in a New Keynesian Framework," Working Papers 2016-007, Banco Central de Reserva del Perú.
    9. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2020. "COVID-19 Is Also a Reallocation Shock," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 329-383.
    10. Yasser Boualam & Clément Mazet-Sonilhac, 2021. "Aggregate Implications of Credit Relationship Flows: a Tale of Two Margin," Working papers 801, Banque de France.
    11. 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.
    12. Marlène Isoré, 2011. "International Propagation of Financial Shocks in a Search and Matching Environment," FIW Working Paper series 068, FIW.
    13. 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.
    14. Brand, Thomas & Isoré, Marlène & Tripier, Fabien, 2017. "Uncertainty Shocks and Firm Dynamics: Search and Monitoring in the Credit Market," CEPREMAP Working Papers (Docweb) 1707, CEPREMAP.
    15. Fabien Tripier, 2014. "A Search-Theoretic Approach to Efficient Financial Intermediation," Working Papers 2014-18, CEPII research center.
    16. 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).
    17. repec:zbw:bofrdp:2016_028 is not listed on IDEAS
    18. 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.
    19. repec:zbw:bofrdp:2017_034 is not listed on IDEAS
    20. 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.
    21. repec:dau:papers:123456789/13009 is not listed on IDEAS
    22. Hyun, Junghwan & Uddin, Azad, 2016. "Heterogeneous lending behaviors and gross loan flows in developing economies," Economic Modelling, Elsevier, vol. 55(C), pages 359-372.

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