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Showing 1 to 1 of 1 for “"Banking Heterogeneity"”.
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Essays on Banking and the Macroeconomic Effects of Financial Intermediation
… in the case of big banks. In my model, when the banking sector is hit with a negative systemic shock, small banks contract their lending during the recession. However, big banks' equity is protected by TBTF policies, so they do not have to contract lending as much. This helps explain the banks' …