Plausibly Exogenous [890] - Motivating Banks (06/27/2022)
LHS Variable
Flow of bank credit
RHS Variable
Main Street Lending Program
Source of Exogenous Variation
Three instruments that reflect banks’ previous engagement and communications with the Federal Reserve regarding the eligibility, riskiness,
and custody of eligible collateral: (i) responses to a survey which examined reasons why they did not register for the program and identifies banks that cited that registration for the program was perceived as too burdensome as a very important reason for not registering for the MSLP; (ii) & (iii) measures of bank familiarity with pledging collateral at the Federal Reserve’s ordinary discount window prior to the onset of the COVID-19 pandemic
- Minoiu, Zarutskie, and Zlate (2022), “Motivating Banks to Lend? Credit Spillover Effects of the Main Street Lending Program”