Outputs (3)

The dark side of liquidity regulation: Bank opacity and funding liquidity risk (2022)
Journal Article
Raz, A. F., McGowan, D., & Zhao, T. (2022). The dark side of liquidity regulation: Bank opacity and funding liquidity risk. Journal of Financial Intermediation, 52, Article 100990. https://doi.org/10.1016/j.jfi.2022.100990

We evaluate how the liquidity coverage rule affects US banks’ opacity and funding liquidity risk. Banks subject to the rule become significantly more opaque and funding liquidity risk increases by $245 million per quarter. Higher funding liquidity ri... Read More about The dark side of liquidity regulation: Bank opacity and funding liquidity risk.

To Securitize or to Price Credit Risk? (2022)
Journal Article
McGowan, D., & Nguyen, H. (2023). To Securitize or to Price Credit Risk?. Journal of Financial and Quantitative Analysis, 58(1), 289-323. https://doi.org/10.1017/s0022109022000552

Do lenders securitize or price loans in response to credit risk? Exploiting exogenous variation in regional credit risk due to foreclosure law differences along U.S. state borders, we find that lenders securitize mortgages that are eligible for sale... Read More about To Securitize or to Price Credit Risk?.

The Digital Credit Divide: Marketplace Lending and Entrepreneurship (2022)
Journal Article
Cumming, D., Farag, H., Johan, S., & McGowan, D. (2022). The Digital Credit Divide: Marketplace Lending and Entrepreneurship. Journal of Financial and Quantitative Analysis, 57(7), 2659-2692. https://doi.org/10.1017/s0022109022000357

We conjecture that marketplace lending provokes an increase in the quantity of entrepreneurship, particularly in more regionally disadvantaged areas, albeit at lower average quality. Using a fuzzy regression discontinuity design that exploits exogeno... Read More about The Digital Credit Divide: Marketplace Lending and Entrepreneurship.