Interbank Connections, Contagion and Bank Distress in the Great Depression
Author
Abstract
Suggested Citation
DOI: 10.20955/wp.2019.001
Note: Publisher DOI: https://doi.org/10.1016/j.jfi.2020.100899
Download full text from publisher
Other versions of this item:
- Charles W. Calomiris & Matthew S. Jaremski & David C. Wheelock, 2019. "Interbank Connections, Contagion and Bank Distress in the Great Depression," NBER Working Papers 25897, National Bureau of Economic Research, Inc.
References listed on IDEAS
- John A. James & David F. Weiman, 2010.
"From Drafts to Checks: The Evolution of Correspondent Banking Networks and the Formation of the Modern U.S. Payments System, 1850–1914,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(2‐3), pages 237-265, March.
- John A. James & David F. Weiman, 2010. "From Drafts to Checks: The Evolution of Correspondent Banking Networks and the Formation of the Modern U.S. Payments System, 1850-1914," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(2-3), pages 237-265, March.
- Miron, Jeffrey A, 1986. "Financial Panics, the Seasonality of the Nominal Interest Rate, and theFounding of the Fed," American Economic Review, American Economic Association, vol. 76(1), pages 125-140, March.
- Heider, Florian & Hoerova, Marie & Holthausen, Cornelia, 2015. "Liquidity hoarding and interbank market rates: The role of counterparty risk," Journal of Financial Economics, Elsevier, vol. 118(2), pages 336-354.
- Mitchener, Kris James & Jaremski, Matthew, 2015. "The Evolution of Bank Supervisory Institutions: Evidence from American States," The Journal of Economic History, Cambridge University Press, vol. 75(3), pages 819-859, September.
- Richardson, Gary, 2007. "Categories and causes of bank distress during the great depression, 1929-1933: The illiquidity versus insolvency debate revisited," Explorations in Economic History, Elsevier, vol. 44(4), pages 588-607, October.
- Mitchener, Kris & Das, Sanjiv & Vossmeyer, Angela, 2018. "Bank Regulation, Network Topology, and Systemic Risk: Evidence from the Great Depression," CEPR Discussion Papers 13416, C.E.P.R. Discussion Papers.
- Wicker,Elmus, 2006. "Banking Panics of the Gilded Age," Cambridge Books, Cambridge University Press, number 9780521025478, September.
- Charles W. Calomiris & Berry Wilson, 2004.
"Bank Capital and Portfolio Management: The 1930s "Capital Crunch" and the Scramble to Shed Risk,"
The Journal of Business, University of Chicago Press, vol. 77(3), pages 421-456, July.
- Charles W. Calomiris & Berry Wilson, 1996. "Bank capital and portfolio management: the 1930s capital crunch and scramble to shed risk," Proceedings 521, Federal Reserve Bank of Chicago.
- Charles W. Calormiris & Berry Wilson, 1998. "Bank Capital and Portfolio Management: The 1930's Capital Crunch and Scramble to Shed Risk," NBER Working Papers 6649, National Bureau of Economic Research, Inc.
- Mark Carlson & David C. Wheelock, 2018.
"Did the Founding of the Federal Reserve Affect the Vulnerability of the Interbank System to Contagion Risk?,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 50(8), pages 1711-1750, December.
- Mark A Carlson & David C Wheelock, 2016. "Did the founding of the Federal Reserve affect the vulnerability of the interbank system to contagion risk?," BIS Working Papers 598, Bank for International Settlements.
- Mark A. Carlson & David C. Wheelock, 2016. "Did the Founding of the Federal Reserve Affect the Vulnerability of the Interbank System to Congation Risk?," Working Papers 2016-12, Federal Reserve Bank of St. Louis.
- Calomiris, Charles W. & Carlson, Mark, 2016.
"Corporate governance and risk management at unprotected banks: National banks in the 1890s,"
Journal of Financial Economics, Elsevier, vol. 119(3), pages 512-532.
- Charles W. Calomiris & Mark A. Carlson, 2014. "Corporate Governance and Risk Management at Unprotected Banks: National Banks in the 1890s," Finance and Economics Discussion Series 2014-08, Board of Governors of the Federal Reserve System (U.S.).
- Charles W. Calomiris & Mark Carlson, 2014. "Corporate Governance and Risk Management at Unprotected Banks: National Banks in the 1890s," NBER Working Papers 19806, National Bureau of Economic Research, Inc.
- David C. Wheelock & Paul W. Wilson, 2000.
"Why do Banks Disappear? The Determinants of U.S. Bank Failures and Acquisitions,"
The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 127-138, February.
- David C. Wheelock & Paul W. Wilson, 1995. "Why do banks disappear? The determinants of U.S. bank failures and acquisitions," Working Papers 1995-013, Federal Reserve Bank of St. Louis.
- Jaremski, Matthew & Wheelock, David C., 2020.
"The Founding of the Federal Reserve, the Great Depression, and the Evolution of the U.S. Interbank Network,"
The Journal of Economic History, Cambridge University Press, vol. 80(1), pages 69-99, March.
- Matthew S. Jaremski & David C. Wheelock, 2019. "The Founding of the Federal Reserve, the Great Depression and the Evolution of the U.S. Interbank Network," NBER Working Papers 26034, National Bureau of Economic Research, Inc.
- Matthew Jaremski & David C. Wheelock, 2019. "The Founding of the Federal Reserve, the Great Depression and the Evolution of the U.S. Interbank Network," Working Papers 2019-2, Federal Reserve Bank of St. Louis.
- Kris James Mitchener & Gary Richardson, 2019.
"Network Contagion and Interbank Amplification during the Great Depression,"
Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 465-507.
- Kris James Mitchener & Gary Richardson, 2016. "Network Contagion and Interbank Amplification during the Great Depression," NBER Working Papers 22074, National Bureau of Economic Research, Inc.
- Mitchener, Kris & Richardson, Gary, 2016. "Network Contagion and Interbank Amplification during the Great Depression," CEPR Discussion Papers 11164, C.E.P.R. Discussion Papers.
- Kris James Mitchener & Gary Richardson, 2016. "Network Contagion and Interbank Amplification during the Great Depression," Working Paper 16-3, Federal Reserve Bank of Richmond.
- Bordo,Michael D. & Roberds,William (ed.), 2013. "The Origins, History, and Future of the Federal Reserve," Cambridge Books, Cambridge University Press, number 9781107013728, September.
- repec:ucp:bkecon:9780226519999 is not listed on IDEAS
- R. Glenn Hubbard, 1991. "Financial Markets and Financial Crises," NBER Books, National Bureau of Economic Research, Inc, number glen91-1.
- Iyer, Rajkamal & Da-Rocha-Lopes, Samuel & Peydró, José-Luis & Schoar, Antoinette, 2014.
"Interbank Liquidity Crunch and the Firm Credit Crunch: Evidence from the 2007-2009 Crisis,"
EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(1), pages 347-372.
- Rajkamal Iyer & José-Luis Peydró & Samuel da-Rocha-Lopes & Antoinette Schoar, 2014. "Interbank Liquidity Crunch and the Firm Credit Crunch: Evidence from the 2007--2009 Crisis," The Review of Financial Studies, Society for Financial Studies, vol. 27(1), pages 347-372, January.
- Rajkamal Iyer & Samuel Da-Rocha-Lopes & José-Luis Peydró & Antoinette Schoar, 2013. "Interbank liquidity crunch and the firm credit crunch: Evidence from the 2007-2009 crisis," Economics Working Papers 1365, Department of Economics and Business, Universitat Pompeu Fabra.
- Rajkamal Iyer & Samuel Da-Rocha-Lopes & José-Luis Peydró & Antoinette Schoar, 2013. "Interbank Liquidity Crunch and the Firm Credit Crunch: Evidence from the 2007-2009 Crisis," Working Papers 687, Barcelona School of Economics.
- Gary Richardson & William Troost, 2009. "Monetary Intervention Mitigated Banking Panics during the Great Depression: Quasi-Experimental Evidence from a Federal Reserve District Border, 1929-1933," Journal of Political Economy, University of Chicago Press, vol. 117(6), pages 1031-1073, December.
- Wicker,Elmus, 1996. "The Banking Panics of the Great Depression," Cambridge Books, Cambridge University Press, number 9780521562614, September.
- Sanjiv R. Das & Kris James Mitchener & Angela Vossmeyer, 2018.
"Bank Regulation, Network Topology, and Systemic Risk: Evidence from the Great Depression,"
NBER Working Papers
25405, National Bureau of Economic Research, Inc.
- Sanjiv R. Das & Kris James Mitchener & Angela Vossmeyer, 2018. "Bank Regulation, Network Topology, and Systemic Risk: Evidence from the Great Depression," CESifo Working Paper Series 7425, CESifo.
- Calomiris, Charles W & Mason, Joseph R, 1997.
"Contagion and Bank Failures during the Great Depression: The June 1932 Chicago Banking Panic,"
American Economic Review, American Economic Association, vol. 87(5), pages 863-883, December.
- Charles W. Calomiris & Joseph R. Mason, 1994. "Contagion and Bank Failures During the Great Depression: The June 1932 Chicago Banking Panic," NBER Working Papers 4934, National Bureau of Economic Research, Inc.
- Charles W. Calomiris & Joseph R. Mason, 1995. "Contagion and bank failures during the Great Depression: the June 1932 Chicago banking panic," Proceedings 451, Federal Reserve Bank of Chicago.
- Calomiris, Charles W. & Carlson, Mark, 2017.
"Interbank networks in the National Banking Era: Their purpose and their role in the Panic of 1893,"
Journal of Financial Economics, Elsevier, vol. 125(3), pages 434-453.
- Charles W Calomiris & Mark A Carlson, 2016. "Interbank networks in the national banking era: their purpose and their role in the panic of 1893," BIS Working Papers 535, Bank for International Settlements.
- Bernstein, Asaf & Hughson, Eric & Weidenmier, Marc D., 2010. "Identifying the effects of a lender of last resort on financial markets: Lessons from the founding of the fed," Journal of Financial Economics, Elsevier, vol. 98(1), pages 40-53, October.
- Erik Heitfield & Gary Richardson & Shirley Wang, 2017. "Contagion During the Initial Banking Panic of the Great Depression," NBER Working Papers 23629, National Bureau of Economic Research, Inc.
- Charles W. Calomiris & Joseph R. Mason, 2003. "Fundamentals, Panics, and Bank Distress During the Depression," American Economic Review, American Economic Association, vol. 93(5), pages 1615-1647, December.
- Charles W. Calomiris & Elliot S.M. Oh, 2018. "Who Owned Citibank? Familiarity Bias and Business Network Influences on Stock Purchases, 1925-1929," NBER Working Papers 24431, National Bureau of Economic Research, Inc.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Calomiris, Charles W. & Jaremski, Matthew & Wheelock, David C., 2022. "Interbank connections, contagion and bank distress in the Great Depression✰," Journal of Financial Intermediation, Elsevier, vol. 51(C).
- Haelim Anderson & Guillermo Ordonez & Selman Erol, 2019.
"Interbank Networks in the Shadows of the Federal Reserve Act,"
2019 Meeting Papers
1285, Society for Economic Dynamics.
- Haelim Anderson & Selman Erol & Guillermo Ordoñez, 2020. "Interbank Networks in the Shadows of the Federal Reserve Act," NBER Working Papers 27721, National Bureau of Economic Research, Inc.
- Landaberry, Victoria & Caccioli, Fabio & Rodriguez-Martinez, Anahi & Baron, Andrea & Martinez-Jaramillo, Serafin & Lluberas, Rodrigo, 2021. "The contribution of the intra-firm exposures network to systemic risk," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 2(2).
- Chotipong Charoensom & Thaisiri Watewai, 2022. "Optimal Liquidity Control and Systemic Risk in an Interbank Network with Liquidity Shocks and Regime-dependent Interconnectedness," PIER Discussion Papers 175, Puey Ungphakorn Institute for Economic Research.
- Barón, Andrea & Landaberry, María Victoria & Lluberas, Rodrigo & Ponce, Jorge, 2021.
"Commercial and banking credit network in Uruguay,"
Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 2(3).
- Andrea Barón & María Victoria Landaberry & Rodrigo Lluberas & Jorge Ponce, 2020. "Commercial and banking credit network in Uruguay," Documentos de trabajo 2020006, Banco Central del Uruguay.
- Jenter, Dirk & Aldunate, Felipe & Korteweg, Arthur & Koudijs, Peter, 2021.
"Shareholder Liability and Bank Failure,"
CEPR Discussion Papers
16309, C.E.P.R. Discussion Papers.
- Aldunate, Felipe & Jenter, Dirk & Korteweg, Arthur & Koudijs, Peter, 2021. "Shareholder liability and bank failure," LSE Research Online Documents on Economics 118863, London School of Economics and Political Science, LSE Library.
- Felipe Aldunate & Dirk Jenter & Arthur Korteweg & Peter Koudijs, 2021. "Shareholder Liability and Bank Failure," CESifo Working Paper Series 9168, CESifo.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Calomiris, Charles W. & Jaremski, Matthew & Wheelock, David C., 2022. "Interbank connections, contagion and bank distress in the Great Depression✰," Journal of Financial Intermediation, Elsevier, vol. 51(C).
- Jenter, Dirk & Aldunate, Felipe & Korteweg, Arthur & Koudijs, Peter, 2021.
"Shareholder Liability and Bank Failure,"
CEPR Discussion Papers
16309, C.E.P.R. Discussion Papers.
- Aldunate, Felipe & Jenter, Dirk & Korteweg, Arthur & Koudijs, Peter, 2021. "Shareholder liability and bank failure," LSE Research Online Documents on Economics 118863, London School of Economics and Political Science, LSE Library.
- Felipe Aldunate & Dirk Jenter & Arthur Korteweg & Peter Koudijs, 2021. "Shareholder Liability and Bank Failure," CESifo Working Paper Series 9168, CESifo.
- Jaremski, Matthew & Wheelock, David C., 2020.
"The Founding of the Federal Reserve, the Great Depression, and the Evolution of the U.S. Interbank Network,"
The Journal of Economic History, Cambridge University Press, vol. 80(1), pages 69-99, March.
- Matthew S. Jaremski & David C. Wheelock, 2019. "The Founding of the Federal Reserve, the Great Depression and the Evolution of the U.S. Interbank Network," NBER Working Papers 26034, National Bureau of Economic Research, Inc.
- Matthew Jaremski & David C. Wheelock, 2019. "The Founding of the Federal Reserve, the Great Depression and the Evolution of the U.S. Interbank Network," Working Papers 2019-2, Federal Reserve Bank of St. Louis.
- Calomiris, Charles W. & Flandreau, Marc & Laeven, Luc, 2016.
"Political foundations of the lender of last resort: A global historical narrative,"
Journal of Financial Intermediation, Elsevier, vol. 28(C), pages 48-65.
- Laeven, Luc & Calomiris, Charles & Flandreau, Marc, 2016. "Political Foundations of the Lender of Last Resort: A Global Historical Narrative," CEPR Discussion Papers 11448, C.E.P.R. Discussion Papers.
- Haelim Anderson & Charles W. Calomiris & Matthew Jaremski & Gary Richardson, 2018.
"Liquidity Risk, Bank Networks, and the Value of Joining the Federal Reserve System,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 50(1), pages 173-201, February.
- Charles W. Calomiris & Matthew Jaremski & Haelim Park & Gary Richardson, 2015. "Liquidity Risk, Bank Networks, and the Value of Joining the Federal Reserve System," NBER Working Papers 21684, National Bureau of Economic Research, Inc.
- Charles W. Calomiris & Matthew Jaremski & Haelim Park & Gary Richardson, 2015. "Liquidity Risk, Bank Networks, and the Value of Joining the Federal Reserve System," Working Papers 15-05, Office of Financial Research, US Department of the Treasury.
- Charles W. Calomiris & Matthew Jaremski & Haelim Park & Gary Richardson, 2016. "Liquidity Risk, Bank Networks, and the Value of Joining the Federal Reserve System," Working Paper 16-6, Federal Reserve Bank of Richmond.
- Jaremski, Matthew, 2018.
"The (dis)advantages of clearinghouses before the Fed,"
Journal of Financial Economics, Elsevier, vol. 127(3), pages 435-458.
- Matthew S. Jaremski, 2017. "The (Dis)Advantages of Clearinghouses Before the Fed," NBER Working Papers 23113, National Bureau of Economic Research, Inc.
- Sanjiv R. Das & Kris James Mitchener & Angela Vossmeyer, 2022. "Bank Regulation, Network Topology, and Systemic Risk: Evidence from the Great Depression," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(5), pages 1261-1312, August.
- Sergio A. Correia & Stephan Luck & Emil Verner, 2024.
"Failing Banks,"
Staff Reports
1117, Federal Reserve Bank of New York.
- Sergio A. Correia & Stephan Luck & Emil Verner, 2024. "Failing Banks," NBER Working Papers 32907, National Bureau of Economic Research, Inc.
- Mark Carlson & David C. Wheelock, 2018.
"Did the Founding of the Federal Reserve Affect the Vulnerability of the Interbank System to Contagion Risk?,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 50(8), pages 1711-1750, December.
- Mark A Carlson & David C Wheelock, 2016. "Did the founding of the Federal Reserve affect the vulnerability of the interbank system to contagion risk?," BIS Working Papers 598, Bank for International Settlements.
- Mark A. Carlson & David C. Wheelock, 2016. "Did the Founding of the Federal Reserve Affect the Vulnerability of the Interbank System to Congation Risk?," Working Papers 2016-12, Federal Reserve Bank of St. Louis.
- Sanjiv R. Das & Kris James Mitchener & Angela Vossmeyer, 2018.
"Bank Regulation, Network Topology, and Systemic Risk: Evidence from the Great Depression,"
CESifo Working Paper Series
7425, CESifo.
- Sanjiv R. Das & Kris James Mitchener & Angela Vossmeyer, 2018. "Bank Regulation, Network Topology, and Systemic Risk: Evidence from the Great Depression," NBER Working Papers 25405, National Bureau of Economic Research, Inc.
- Mitchener, Kris & Das, Sanjiv & Vossmeyer, Angela, 2018. "Bank Regulation, Network Topology, and Systemic Risk: Evidence from the Great Depression," CEPR Discussion Papers 13416, C.E.P.R. Discussion Papers.
- Mark Carlson & Matthew Jaremski, 2023.
"Liquidity Requirements, Free‐Riding, and the Implications for Financial Stability Evidence from the Early 1900s,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(1), pages 323-341, February.
- Mark A. Carlson & Matthew Jaremski, 2018. "Liquidity Requirements, Free-Riding, and the Implications for Financial Stability Evidence from the Early 1900s," Finance and Economics Discussion Series 2018-018, Board of Governors of the Federal Reserve System (U.S.).
- Mark Carlson & Matthew S. Jaremski, 2020. "Liquidity Requirements, Free-Riding, and the Implications for Financial Stability Evidence from the early 1900s," NBER Working Papers 27912, National Bureau of Economic Research, Inc.
- Kris James Mitchener & Gary Richardson, 2019.
"Network Contagion and Interbank Amplification during the Great Depression,"
Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 465-507.
- Kris James Mitchener & Gary Richardson, 2016. "Network Contagion and Interbank Amplification during the Great Depression," NBER Working Papers 22074, National Bureau of Economic Research, Inc.
- Kris James Mitchener & Gary Richardson, 2016. "Network Contagion and Interbank Amplification during the Great Depression," Working Paper 16-3, Federal Reserve Bank of Richmond.
- Mitchener, Kris & Richardson, Gary, 2016. "Network Contagion and Interbank Amplification during the Great Depression," CEPR Discussion Papers 11164, C.E.P.R. Discussion Papers.
- Calomiris, Charles W. & Carlson, Mark, 2017.
"Interbank networks in the National Banking Era: Their purpose and their role in the Panic of 1893,"
Journal of Financial Economics, Elsevier, vol. 125(3), pages 434-453.
- Charles W Calomiris & Mark A Carlson, 2016. "Interbank networks in the national banking era: their purpose and their role in the panic of 1893," BIS Working Papers 535, Bank for International Settlements.
- Breitenlechner, Max & Mathy, Gabriel P. & Scharler, Johann, 2021.
"Decomposing the U.S. Great Depression: How important were loan supply shocks?,"
Explorations in Economic History, Elsevier, vol. 79(C).
- Breitenlechner, Max & Scharler, Johann, 2017. "Decomposing the U.S. Great Depression: How important were Loan Supply Shocks?," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168208, Verein für Socialpolitik / German Economic Association.
- Mark A. Carlson & David C. Wheelock, 2018. "Furnishing an “Elastic Currency”: The Founding of the Fed and the Liquidity of the U.S. Banking System," Review, Federal Reserve Bank of St. Louis, vol. 100(1), pages 17-44.
- Michael D. Bordo & John Landon-Lane, 2010. "The Lessons from the Banking Panics in the United States in the 1930s for the Financial Crisis of 2007-2008," NBER Working Papers 16365, National Bureau of Economic Research, Inc.
- Marodin, Fabrizio Almeida & Mitchener, Kris James & Richardson, Gary, 2024. "Contagion of fear: Panics, money, and the Great Depression," Explorations in Economic History, Elsevier, vol. 93(C).
- Nanda, Ramana & Nicholas, Tom, 2014.
"Did bank distress stifle innovation during the Great Depression?,"
Journal of Financial Economics, Elsevier, vol. 114(2), pages 273-292.
- Ramana Nanda & Tom Nicholas, 2014. "Did Bank Distress Stifle Innovation During the Great Depression?," NBER Working Papers 20392, National Bureau of Economic Research, Inc.
- Charles Calomiris, 2009. "Banking Crises and the Rules of the Game," NBER Working Papers 15403, National Bureau of Economic Research, Inc.
More about this item
Keywords
Bank Contagion; Great Depression; Interbank Networks; Liquidity Risk; Federal Reserve System;All these keywords.
JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
NEP fields
This paper has been announced in the following NEP Reports:- NEP-BAN-2019-01-21 (Banking)
- NEP-CBA-2019-01-21 (Central Banking)
- NEP-HIS-2019-01-21 (Business, Economic and Financial History)
- NEP-MON-2019-01-21 (Monetary Economics)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedlwp:2019-001. See general information about how to correct material in RePEc.
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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anna Oates (email available below). General contact details of provider: https://edirc.repec.org/data/frbslus.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.