Page 2 - Stephan Luck News Today : Breaking News, Live Updates & Top Stories | Vimarsana

The corporate “dash for cash” and banks’ pullback from risk-taking Image In spring 2020, stay-at-home policies aimed at containing the spread of the coronavirus led to a sharp decline in the revenues of nonfinancial firms. To shore up cash positions and ride out the crisis, firms approached their banks and drew down on pre-committed lines of credit. As a result, between early March and the end of April, the banking system was hit by a tidal wave of credit line drawdowns (figure 1), estimated at about half a trillion USD (Li et al. 2020). Banks were able to withstand the unprecedented cr...

An annual tradition at Liberty Street Economics is to present our most‑read posts of the year. Given the events of 2020, New York Fed economists and guest coauthors focused their analysis on the effects of the coronavirus pandemic, writing some seventy articles since March on the subject. Our leading posts, in terms of traffic, all touch on the theme in some way. Consider this space a hub for COVID-19 coverage for some time to come, and take a look back at the top five posts grabbing attention in 2020. Our top post of the year took on a topic of significant relevance for policymakers today...