More from the Author

• Working Paper | 2018

  Large Banks and Small Firm Lending

  Vitaly Bord, Victoria Ivashina and Ryan D. Taliaferro

  We show that since 2007, there was a large and persistent shift in the composition of lenders to small firms. Large banks impacted by the real estate prices collapse systematically contracted their credit to all small firms throughout the United States. However, healthy banks expanded their operations and entered new banking markets. The market share gain of these banks was a standard deviation above the long-run historical market share growth and persists for years following the financial crisis. Despite this offsetting expansion, the net effect of the contraction in credit was negative, with lower aggregate credit and deposits growth as well as lower entrepreneurial activity through 2015.

  Keywords: Banks and Banking; Financing and Loans; Small Business; Financial Crisis;

  Citation:

  Bord, Vitaly, Victoria Ivashina, and Ryan D. Taliaferro. "Large Banks and Small Firm Lending." NBER Working Paper Series, No. 25184, October 2018.  View Details

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• Working Paper | 2015

  Large Banks and the Transmission of Financial Shocks

  Vitaly Bord, Victoria Ivashina and Ryan Taliaferro

  We explore the role of large banks in propagating economic shocks across the U.S. economy. We show that in 2007 and 2008, large banks operating in U.S. counties most affected by the decline in real estate prices contracted their credit to small businesses in counties that were not affected by falling real estate prices. These exposed banks were also more likely to completely cease operations in unaffected counties. By contrast, healthy banks — those not exposed to real estate price shocks — were more likely to expand operations and even to enter new banking markets, capturing market share in both loans and deposits. On average, the market share gain of healthy banks relative to exposed banks was a standard deviation above the long-run historic average market share growth. This offsetting effect was stronger for counties with a larger presence of exposed banks, and it resulted in changes in market share composition that had lasting effects. However, the net effect was negative and counties with a larger presence of exposed banks experienced slower overall growth in deposits, loans, employment, and number of small business establishments. These effects persist for several years after the initial shock.

  Keywords: System Shocks; Banks and Banking; Banking Industry; United States;

  Citation:

  Bord, Vitaly, Victoria Ivashina, and Ryan Taliaferro. "Large Banks and the Transmission of Financial Shocks." Working Paper, November 2015.  View Details

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• Case | HBS Case Collection | August 2001 (Revised September 2015)

  Operations at the Donner Company

  H. Kent Bowen

  A small manufacturer of circuit boards faces product and operations-management problems. This case analyzes the production capacity at various stages and examines bottlenecks and product flow decisions. A detailed look at the problems and a discussion of the tools and techniques of process analysis is used to determine the importance of problems, identify solutions, and discuss implementation issues.

  Keywords: Operations; Production; Performance Capacity; Business Processes; Logistics; Electronics Industry; Manufacturing Industry;

  Citation:

  Bowen, H. Kent. "Operations at the Donner Company." Harvard Business School Case 602-040, August 2001. (Revised September 2015.)  View Details

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