Exporting Liquidity: Branch Banking and Financial Integration / Erik Gilje, Elena Loutskina, Philip E. Strahan.

Format:

Book

Author/Creator:

Gilje, Erik.

Contributor:

National Bureau of Economic Research.

Loutskina, Elena.

Strahan, Philip E.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19403.

NBER working paper series no. w19403

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Exporting Liquidity

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2013.

Summary:

Using exogenous deposit windfalls from oil and natural gas shale discoveries, we demonstrate that bank branch networks help integrate U.S. lending markets. We find that banks exposed to shale booms increase their mortgage lending in non-boom counties by 0.93% per 1% increase in deposits. This effect is present only in markets where banks have branches and is strongest for mortgages that are hard to securitize. Our findings suggest that contracting frictions limit the ability of arm's length finance to integrate credit markets fully. Branch networks continue to play an important role in financial integration, despite the development of securitization markets.

Notes:

Print version record

September 2013.