publication . Report . Preprint . Article . 2015

Credit Market Information Feedback

Saeed Zaman; Lakshmi Balasubramanyan; James B. Thomson; Ben R. Craig;
Open Access
  • Published: 16 Sep 2015 Journal: Working paper (Federal Reserve Bank of Cleveland) (eissn: 2573-7953, Copyright policy)
  • Publisher: Federal Reserve Bank of Cleveland
Abstract
We examine how a combination of credit market and asset quality information can jointly be used in assessing bank franchise value. We find that expectations of future credit demand and future asset quality explain contemporaneous bank franchise value, indicative of the feedback in credit market information and its consequent impact on bank franchise value.
Subjects
free text keywords: bank franchise value; asset quality; credit demand; information; expectations, jel:E52, jel:G01, jel:G28, Credit reference, Bond market, Financial system, Credit valuation adjustment, Credit rating, Credit history, Asset quality, Economics, Credit card interest, Credit crunch
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