NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Non-Core Bank Liabilities and Financial Vulnerability

Joon-Ho Hahm, Hyun Song Shin, Kwanho Shin

NBER Working Paper No. 18428
Issued in September 2012
NBER Program(s):CF, IFM

A lending boom is reflected in the composition of bank liabilities when traditional retail deposits (core liabilities) cannot keep pace with asset growth and banks turn to other funding sources (non-core liabilities) to finance their lending. We formulate a model of credit supply as the flip side of a credit risk model where a large stock of non-core liabilities serves as an indicator of the erosion of risk premiums and hence of vulnerability to a crisis. We find supporting empirical evidence in a panel probit study of emerging and developing economies.

download in pdf format
   (323 K)

email paper

Supplementary materials for this paper:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18428

Published: Joon‐Ho Hahm & Hyun Song Shin & Kwanho Shin, 2013. "Noncore Bank Liabilities and Financial Vulnerability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45, pages 3-36, 08. citation courtesy of

Users who downloaded this paper also downloaded* these:
Hahm, Mishkin, Shin, and Shin w17780 Macroprudential Policies in Open Emerging Economies
Shin and Shin w16836 Procyclicality and Monetary Aggregates
Bolton, Freixas, Gambacorta, and Mistrulli w19467 Relationship and Transaction Lending in a Crisis
Ordoñez w19022 Sustainable Shadow Banking
Bruno and Shin w19038 Capital Flows, Cross-Border Banking and Global Liquidity
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us