Credit Market Information Feedback

12 Pages Posted: 6 Oct 2015

See all articles by Lakshmi Balasubramanyan

Lakshmi Balasubramanyan

Case Western Reserve University - Weatherhead School of Management

Ben R. Craig

Federal Reserve Bank of Cleveland; Deutsche Bundesbank

James B. Thomson

University of Akron

Saeed Zaman

Federal Reserve Banks - Federal Reserve Bank of Cleveland

Date Written: 2015-09-18

Abstract

We examine how a combination of credit market and asset quality information can jointly be used in assessing bank franchise value. We find that expectations of future credit demand and future asset quality explain contemporaneous bank franchise value, indicative of the feedback in credit market information and its consequent impact on bank franchise value.

Keywords: bank franchise value, asset quality, credit demand, information, expectations

JEL Classification: E52, G01, G28

Suggested Citation

Balasubramanyan, Lakshmi and Craig, Ben R. and Thomson, James B. and Zaman, Saeed, Credit Market Information Feedback (2015-09-18). FRB of Cleveland Working Paper No. 1515. Available at SSRN: https://ssrn.com/abstract=2669830

Lakshmi Balasubramanyan (Contact Author)

Case Western Reserve University - Weatherhead School of Management ( email )

10900 Euclid Ave.
Cleveland, OH 44106-7235
United States

Ben R. Craig

Federal Reserve Bank of Cleveland ( email )

PO Box 6387
Cleveland, OH 44101
United States
216-579-2061 (Phone)
216-579-3050 (Fax)

Deutsche Bundesbank

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

James B. Thomson

University of Akron ( email )

Akron, OH 44325-4803
United States

Saeed Zaman

Federal Reserve Banks - Federal Reserve Bank of Cleveland ( email )

East 6th & Superior
Cleveland, OH 44101-1387
United States

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