Eastern Economic Journal

, Volume 42, Issue 4, pp 611–629 | Cite as

Long-Term Trends in Intra-Financial Sector Lending in the United States (1950–2012)

  • Juan Antonio Montecino
  • Gerald Epstein
  • Iren Levina
Original Article


This paper examines the evolution of intra-financial sector lending in the United States, 1950–2012, constructing estimates from the Federal Reserve’s Flow of Funds Accounts. Lending between financial institutions has grown nearly five-fold since the 1950s and currently accounts for roughly half of all financial sector lending. In the run up to the financial crisis of 2007–2008, the growth of intra-financial lending was concentrated in assets highly implicated in the genesis of the crisis, suggesting that this growth may have contributed to the crisis. This growth in intra-financial lending also raises questions about the contribution of the financial sector to the real economy.


finance intra-financial lending financial crisis 


G01 G10 G20 



The authors thank the Institute for New Economic Thinking (INET) for financial support and participants in workshops at the University of Massachusetts, Amherst and the New School for Social Research for helpful comments.


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Copyright information

© EEA 2016

Authors and Affiliations

  • Juan Antonio Montecino
    • 1
  • Gerald Epstein
    • 2
  • Iren Levina
    • 3
  1. 1.Department of Economics, University of MassachusettsAmherstUSA
  2. 2.Department of Economics and Political Economy Research Institute (PERI), University of MassachusettsAmherstUSA
  3. 3.Department of Economics, Kingston UniversityLondonUK

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