Changing Perceptions of Maturity Mismatch in the U.S. Banking System: Evidence from Equity Markets.

We use the sensitivity of bank holding company equity returns to market interest rates as an indicator of perceived maturity mismatch. Based on data from 1990 to 2009, there is only weak evidence that market participants perceived banks to be effectively short-funded. However, looking at 1990-1996 a...

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Publicado en:Southern Economic Journal Vol. 81; no. 1; pp. 193 - 211
Autores principales: Young, Andrew T., Wiseman, Travis, Hogan, Thomas L.
Formato: Artículo
Publicado: Wiley-Blackwell Jul2014
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.4284/0038-4038-2011.332
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        atl: Changing Perceptions of Maturity Mismatch in the U.S. Banking System: Evidence from Equity Markets.
      aug:
        au:
          Young, Andrew T.
          Wiseman, Travis
          Hogan, Thomas L.
        affil:
          College of Business and Economics, West Virginia University, Morgantown, WV 26506-6025, USA
          Department of Economics and Finance, Mississippi State University, Mississippi State, MS 39762, USA
          Department of Economics, West Texas A&M University, Canyon, TX 79016, USA
      su:
        Banking industry
        Legal evidence
        Macroeconomics
        Actions & defenses (Law)
        Trusts & trustees
        Interest rates
        Monetary policy
      sug:
        subj:
          Banking industry
          Legal evidence
          Macroeconomics
          Actions & defenses (Law)
          Other Depository Credit Intermediation
          Commercial Banking
          Personal and commercial banking industry
          Savings Institutions
          Other Activities Related to Real Estate
          All other miscellaneous funds and financial vehicles
          Trust, Fiduciary, and Custody Activities
          Portfolio Management
          Trusts, Estates, and Agency Accounts
          Trusts & trustees
          Interest rates
          Monetary policy
      ab: We use the sensitivity of bank holding company equity returns to market interest rates as an indicator of perceived maturity mismatch. Based on data from 1990 to 2009, there is only weak evidence that market participants perceived banks to be effectively short-funded. However, looking at 1990-1996 and 1997-2009 subsamples separately, our results suggest that U.S. commercial banks were perceived as short-funded during the earlier time period but not the later. During this time of changing perceptions of maturity mismatch, banks were increasing their holdings of real estate loans as a share of total assets. We present evidence that, subsequent to 1996, market participants perceived real estate loans as having become effectively shorter-term.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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