Download This PaperU.S. Commercial Bank Lending Through 2008:Q4: New Evidence from Gross Credit Flows
Federal Reserve Bank of St. Louis Working Paper No. 2009-011C
40 Pages Posted: 21 Mar 2009 Last revised: 6 Sep 2010
Date Written: September 3, 2010
Abstract
What was hiding behind the aggregate commercial bank loans through the end of 2008? We use balance sheet data for every insured U.S. commercial bank from 1999:Q1 to 2008:Q4 to construct credit expansion and credit contraction series and provide new evidence on changes in lending. Until 2008:Q3 net credit growth was not dissimilar to the 1980 and 2001 recessions. However, between the third and fourth quarter credit contraction grew larger than credit expansion across all types of loans and for the largest banks. With the inclusion of 2008:Q4 data our series most resemble the intensification of the Savings and Loan crisis.
Keywords: Credit Market, Reallocation, Aggregate Restructuring, Business Cycle, Financial crisis
JEL Classification: E44, E51, G21
Suggested Citation: Suggested Citation
Financial Research Network (FIRN) ( email )
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
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