Tracing out Capital Flows: How Financially Integrated Banks Respond to Natural Disasters


Multi-market banks reallocate capital when local credit demand increases after natural disasters. Using property damage as an instrument for lending growth, we find credit in unaffected but connected markets declines by a little less than 50 cents per dollar of additional lending in shocked areas. However, banks shield their core markets because most of the… (More)


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Citations per Year

Citation Velocity: 13

Averaging 13 citations per year over the last 2 years.

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