Monetary policy shocks and peer-to-peer lending in China

Michael Funke, Xiang Li and Andrew Tsang

This paper studies monetary policy transmission in China's peer-to-peer lending market. Using spectral measures of causality, we explore the impacts of Chinese monetary policy shocks on China's P2P market interest rates and lending amounts. The estimation results indicate significant spectral Granger causality from monetary policy surprises to P2P lending rates for borrowers, but not the reverse. Unlike the lending channel for traditional banks, monetary policy shocks do not Granger-cause the credit amount in the P2P lending market.

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Year of publication:	05.12.2019
Authors:	Funke, Michael ; Li, Xiang ; Tsang, Andrew
Publisher:	Helsinki : Bank of Finland, BOFIT Institute for Economies in Transition
Subject:	non-bank financial institutions \| peer-to-peer lending \| financial intermediation \| granger causality \| spectral analysis \| China \| Finanzintermediation \| Financial intermediation \| Geldpolitik \| Monetary policy \| Kreditgeschäft \| Bank lending \| Kausalanalyse \| Causality analysis \| Kreditmarkt \| Credit market \| Schock \| Shock \| Finanzsektor \| Financial sector \| Geldpolitische Transmission \| Monetary transmission

Extent:	1 Online-Ressource (circa 24 Seiten) Illustrationen
Series:	BOFIT discussion papers. - Helsinki : [Verlag nicht ermittelbar], ISSN 1456-5889, ZDB-ID 2234235-7. - Vol. 2019, 23
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
ISBN:	978-952-323-305-8
Other identifiers:	hdl:10419/212931 [Handle]
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; E43 - Determination of Interest Rates; Term Structure Interest Rates ; G23 - Pension Funds; Other Private Financial Institutions ; C22 - Time-Series Models
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10012161128