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The rise of shadow banking: evidence from capital regulation

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dc.contributor.author Irani, Rustom M.
dc.contributor.author Iyer, Rajkamal
dc.contributor.author Meisenzahl, Ralf R.
dc.contributor.author Peydró, José-Luis
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2020-05-25T09:27:06Z
dc.date.available 2020-05-25T09:27:06Z
dc.date.issued 2018-04-30
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1652
dc.identifier.citation
dc.identifier.uri http://hdl.handle.net/10230/44780
dc.description.abstract We investigate the connections between bank capital regulation and the prevalence of lightly regulated nonbanks (shadow banks) in the U.S. corporate loan market. For identification, we exploit a supervisory credit register of syndicated loans, loan-time fixed-effects, and shocks to capital requirements arising from surprise features of the U.S. implementation of Basel III. We find that less-capitalized banks reduce loan retention, particularly among loans with higher capital requirements and at times when capital is scarce, and nonbanks step in. This reallocation has important spillovers: during the 2008 crisis, loans funded by nonbanks with fragile liabilities are less likely to be rolled over and experience greater price volatility.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1652
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title The rise of shadow banking: evidence from capital regulation
dc.title.alternative
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2020-05-25T09:25:57Z
dc.subject.keyword shadow banks; risk-based capital regulation; basel iii; interactions between banks and nonbanks; trading by banks; distressed debt
dc.subject.keyword Finance and Accounting
dc.subject.keyword Macroeconomics and International Economics
dc.rights.accessRights info:eu-repo/semantics/openAccess

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