Sunday, March 6, 2011

Random charts

Source: TARP Beneficiaries and Their Lending Patterns During the Financial Crisis. Its conclusion?

"Because of the small number of data points (only the four quarters since the CPP was introduced), we cannot formally test for differences in lending behavior. However, we show that the depository institutions that received CPP assistance exhibited less lending contraction than non-CPP beneficiaries. We emphasize that the better performance of CPP beneficiaries may be due to any combination of the following factors: (i) the fact that the CPP actually slowed the decline in lending, (ii) a selection problem that cannot be addressed in our study but which we attempt to analyze in related research, and (iii) the fact that what appears as relatively larger lending growth (or lower lending decline) masks a postponement of bad loan write-downs."

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