{
  "title": "Banks' Liability Structure and Mortgage Lending During the Financial Crisis",
  "publication": "IMF Working Papers, June 1, 2012",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995/index.md",
  "summary": "We examine the impact of banks’ exposure to market liquidity shocks through wholesale funding on their supply of credit during the financial crisis in the United States.",
  "sections": [
    {
      "heading": "Summary and main findings",
      "content": "- Research question: impact of banks’ exposure to market liquidity shocks through wholesale funding on their supply of credit during the financial crisis in the United States.\n- Focus: mortgage lending to minimize confounding demand factors across heterogeneous credit categories.\n- Key empirical finding: banks that were more reliant on wholesale funding curtailed their credit significantly more than retail-funded banks during the crisis.\n- Demand-side observation: the demand for mortgage credit declined evenly across wholesale and retail banks.\n- Aggregate implication: wholesale funding was a strong and significant predictor of a sharper decline in overall mortgage credit at the Metropolitan Statistical Area (MSA) level."
    },
    {
      "heading": "Data, identification, and methodology",
      "content": "- Data: disaggregated data on mortgage applications enabling study of time variations in banks’ decisions to grant mortgage loans while controlling for bank, borrower, and regional characteristics.\n- Identification strategies and robustness:\n  - Matching exercises that eliminate imbalances in observable applicant characteristics between wholesale and retail banks.\n  - Various other robustness tests enabled by the wealth of data.\n- Outcome of methodological approach: allowed isolation of credit-supply effects associated with banks’ liability structure from demand-side movements in mortgage applications."
    },
    {
      "heading": "Aggregate analysis and geographic heterogeneity",
      "content": "- Exploitation of heterogeneity in mortgage funding across U.S. MSAs to assess aggregate implications.\n- Finding at MSA level: areas with greater reliance on wholesale-funded banks experienced sharper declines in overall mortgage credit.\n\n---\n\n Content in this bundle\n\n- Wp12155\n  - Wp12155 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp12155 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995/bundle-manifest.json)",
    "Authors: Jihad Dagher, Kazim Kazimov",
    "Published: June 1, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475504460.001",
    "Research question: impact of banks’ exposure to market liquidity shocks through wholesale funding on their supply of credit during the financial crisis in the United States.",
    "Focus: mortgage lending to minimize confounding demand factors across heterogeneous credit categories.",
    "Key empirical finding: banks that were more reliant on wholesale funding curtailed their credit significantly more than retail-funded banks during the crisis.",
    "Demand-side observation: the demand for mortgage credit declined evenly across wholesale and retail banks.",
    "Aggregate implication: wholesale funding was a strong and significant predictor of a sharper decline in overall mortgage credit at the Metropolitan Statistical Area (MSA) level.",
    "Data: disaggregated data on mortgage applications enabling study of time variations in banks’ decisions to grant mortgage loans while controlling for bank, borrower, and regional characteristics.",
    "Identification strategies and robustness:",
    "Outcome of methodological approach: allowed isolation of credit-supply effects associated with banks’ liability structure from demand-side movements in mortgage applications.",
    "Exploitation of heterogeneity in mortgage funding across U.S. MSAs to assess aggregate implications.",
    "Finding at MSA level: areas with greater reliance on wholesale-funded banks experienced sharper declines in overall mortgage credit.",
    "**Wp12155**"
  ],
  "related": [
    {
      "title": "Wp12155",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2012/_wp12155.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2012/_wp12155.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2012/_wp12155.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/banks-liability-structure-and-mortgage-lending-during-the-financial-crisis-25995/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T09:55:31.020Z"
}