Current Issues in Economics and Finance
Are Banks Still Important for Financing Large Businesses?
August 1999 Volume 5, Number 12
JEL classification: G2, G32

Authors: Marc R. Saidenberg and Philip E. Strahan

As more corporations turn to the securities markets to meet their funding needs, the role of banks as providers of credit to large businesses seems increasingly uncertain. But a look at developments during the financial market turmoil last fall suggests that banks are still a critical source of liquidity at times of economic stress.

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