Dr Mark J. Flannery, University of Florida
Dr Flannery examines the effect of house price appreciation on bank loan portfolios during the 1996-2006 period. While most previous research in this area has concentrated on loan demand effects, this study evaluates how house prices affect a bank’s credit supply. Controlling for possible simultaneity between house prices and bank loan portfolio growth, findings show that banks affected by greater house price appreciation became larger and increase their business lending as well as their mortgage lending. Next, the study uses county-level data to decompose small business loan growth into supply and demand shocks, finding that house prices have a significantly positive impact on an affected bank’s supply of small business loans. Furthermore, house price booms have a positive effect on the employment growth of small establishments at the county level through the bank balance sheet channel.
Speaker bio
Mark J. Flannery has been the Bank of America Eminent Scholar in Finance at the University of Florida since 1989. His published work has often involved academic studies of the financial regulatory process, particularly as it applies to banks in the US and abroad. His “hands-on” regulatory experience most recently includes more than two years as the Chief Economist and Director of the Division of Economics and Risk Analysis at the US Securities and Exchange Commission. In that position, he was involved in developing numerous rules and regulations for the mutual fund industry, CDS trading standards, and various equity market and firm reporting requirements. Professor Flannery worked as a part-time Senior Adviser to the Office of Financial Research from 2011-2014 and has been a long-term visitor to the Federal Reserve Bank of New York’s Research Department.
Event timings
Date:
8 May 2018
Start Time:
12:00
End Time:
14:00