Sharp increase in interbank interest rates post-Lehman collapse, impacting lending volume.
The study looked at how banks lend money to each other for longer periods during the financial crisis. They used a method to figure out details about these loans using data from the Federal Reserve. After Lehman Brothers failed, interest rates on these loans became more varied, loans were for shorter periods, and the total amount of lending decreased. This new method helps us understand more about how banks lend money to each other for longer periods.