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From Subprime Loans to Subprime Growth? [electronic resource] : Evidence for the Euro Area, Cihák, Martin.

Author/Creator:
Cihák, Martin.
Publication:
Washington, D.C. : International Monetary Fund, 2009.
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 09/69.
IMF Working Papers; Working Paper No. 09/69
Format/Description:
Government document
Book
1 online resource (35 p.)
Local subjects:
Bank assets.
Bank credit.
Bank data.
Bank equity.
Bank financing.
Bank for international settlements.
Bank funding.
Bank lending.
Bank loan.
Bank loans.
Bank losses.
Bank size.
Bank soundness.
Bankers.
Banking.
Banking crisis.
Banking sector.
Banking system.
Banks balance sheets.
Bond.
Bond financing.
Bond issuance.
Bond market.
Bond rate.
Bond spread.
Bond spreads.
Bond yield.
Bondholders.
Bonds.
Corporate bond.
Corporate bond financing.
Corporate bonds.
Coupon bond.
Credit risk.
Deposit rate.
Deposit rates.
Economic models.
Equity market.
Equity shares.
Excess demand.
Financial institutions.
Financial instruments.
Financial intermediation.
Financial market.
Financial markets.
Financial risk.
Financial sector.
Financial stability.
Financial structure.
Financial structures.
Government bond.
Government bond yield.
High yield bond.
Interest rates.
International reserves.
Money market.
Money market rate.
Net interest margin.
Net present value.
Nonperforming loan.
Present value.
Probability of default.
Recapitalization.
Risk-free interest rate.
Segmentation.
Sovereign bond.
Sovereign risk.
Stock market.
Stock price.
Stock prices.
United States.
Summary:
The global financial crisis has highlighted the potential of financial conditions for influencing real economic activity. We examine the linkages between the financial and real sectors in the euro area, finding that (i) bank loan supply responds negatively to declines in bank soundness; (ii) a cutback in bank loan supply has a negative impact on economic activity; (iii) a positive shock to the corporate bond spread lowers industrial output; and (iv) risk indicators for the banking, corporate, and public sectors show an improvement beginning in 2002–03, followed by a major deterioration since 2007. These estimates imply that the currently estimated bank losses would subtract some 2 percentage points from the euro area output (but with considerable uncertainty around the estimates).
Notes:
Description based on print version record.
Contributor:
Cihák, Martin.
Koeva Brooks, Petya.
Other format:
Print Version:
ISBN:
145187216X:
9781451872163
ISSN:
1018-5941
Publisher Number:
10.5089/9781451872163.001
Access Restriction:
Restricted for use by site license.
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