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Bank Executive Experience with Clearinghouse Loan Certificates

Author

Listed:
  • Christopher Hoag

    (Department of Economics, Trinity College)

Abstract

Does borrowing from a lender of last resort in the previous financial crisis encourage borrowing from a lender of last resort in the next financial crisis? In the late nineteenth century, clearinghouse loan certificates served as an early lender of last resort program. This paper uses individual bank data for New York City banks from four financial crises over the period 1884 to 1907 to evaluate senior bank executive experience with borrowing clearinghouse loan certificates. The results provide some evidence that bank presidents with experience at the same bank during the previous crisis borrowed larger amounts of loan certificates in the subsequent crisis.

Suggested Citation

  • Christopher Hoag, 2019. "Bank Executive Experience with Clearinghouse Loan Certificates," Working Papers 1903, Trinity College, Department of Economics.
    • Handle: RePEc:tri:wpaper:1903
    as

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    File URL: http://www3.trincoll.edu/repec/WorkingPapers2019/WP19-03.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    lender of last resort; executive; learning; clearinghouse loan certificate.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • N21 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: Pre-1913

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