The seed of a crisis: Investor sentiment and bank liquidity

被引:2
|
作者
He, Liang [1 ]
机构
[1] Fudan Univ, Sch Econ, Shanghai 200433, Peoples R China
基金
中国国家自然科学基金;
关键词
Investor sentiment; Bank liquidity; Credit lines; Arbitrage risk; RISK;
D O I
10.1016/j.frl.2018.06.014
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
This paper investigates the role of investor sentiment in bank liquidity. I argue that investor sentiment provides banks with a natural hedge against liquidity risk in normal times. However, banks are unaware that such hedge becomes invalid during a prolonging distress. I show that these together contribute to the excessive growth of credit lines in market booms, which may in turn plant the seed of a potential liquidity crisis.
引用
收藏
页码:152 / 155
页数:4
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