Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241130 
Year of Publication: 
2021
Series/Report no.: 
Staff Report No. 937
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
We document the propagation effects through supply chains of the most damaging cyberattack in history and the important role of banks in mitigating its impact. Customers of directly hit firms saw reductions in revenues, profitability, and trade credit relative to similar firms. The losses were larger for customers with fewer alternative suppliers and suppliers producing high-specificity inputs. Internal liquidity buffers and increased borrowing, mainly through bank credit lines at higher rates due to increased risk, helped affected customers to maintain investment and employment. However, the shock led to persisting adjustments to the supply chain network.
Subjects: 
cyberattacks
supply chains
credit lines
JEL: 
E23
G21
G3
L14
Document Type: 
Working Paper

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