Flooded Through the Back Door: The Role of Bank Capital in Local Shock Spillovers
研究发现低银行资本会放大局部冲击的溢出效应，利用自然灾害作为自然实验，表明与低资本银行关联的企业在灾害后借贷和资产显著减少，进而影响区域GDP和失业。
Abstract This article demonstrates that low bank capital carries a negative externality because it amplifies local shock spillovers. We exploit a natural disaster that is transmitted to firms in nondisaster areas via their banks. Firms connected to a strongly disaster-exposed bank with lowest-quartile capitalization significantly reduce their total borrowing by 6.6% and tangible assets by 6.9% compared to similar firms connected to a well-capitalized bank. These findings translate to negative regional effects on GDP and unemployment. Additionally, following a disaster event, banks reduce their exposure to currently unaffected but generally disaster-prone areas.