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The currency dimension of the bank lending channel in international monetary transmission

Takáts, Előd; Temesvary, Judit - 2017

We investigate how the use of a currency transmits monetary policy shocks in the global banking system. We use newly available unique data on the bilateral cross-border lending flows of 27 BIS-reporting lending banking systems to over 50 borrowing countries, broken down by currency denomination...

Persistent link: https://www.econbiz.de/10011708082

Volatility, Money Market Rates, and the Transmission of Monetary Policy

Carpenter, Seth B. - 2011

Central banks typically control an overnight interest rate as their policy tool, and the transmission of monetary policy happens through the relationship of this overnight rate to the rest of the yield curve. The expectations hypothesis, that longer-term rates should equal expected future...

Persistent link: https://www.econbiz.de/10013124991

Quantitative easing and bank risk taking : evidence from lending

Kandrac, John; Schlusche, Bernd - 2017

We empirically assess the effect of reserve accumulation as a result of quantitative easing (QE) on bank-level lending and risk taking activity. To overcome the endogeneity of bank-level reserve holdings to banks' other portfolio decisions, we employ instruments made available by a regulatory...

Persistent link: https://www.econbiz.de/10011803753

The Transmission of Monetary Policy Through Bank Lending : The Floating Rate Channel

Ippolito, Filippo; Ozdagli, Ali; Pérez, Ander - 2017

We describe and test a mechanism through which outstanding bank loans affect the firm balance sheet channel of monetary policy transmission. Unlike other debt, most bank loans have floating rates mechanically tied to monetary policy rates. Hence, monetary policy-induced changes to floating rates...

Persistent link: https://www.econbiz.de/10014352397

Bank market power and the risk channel of monetary policy

Afanasyeva, Elena; Güntner, Jochen - 2018 - This version: January 2018

This paper investigates the risk channel of monetary policy through banks' lending standards. We modify the classic costly state verification (CSV) problem by introducing a risk-neutral monopolistic bank, which maximizes profits subject to borrower participation. While the bank can diversify...

Persistent link: https://www.econbiz.de/10011803796

How does the interaction of macroprudential and monetary policies affect cross-border bank lending?

Takáts, Előd; Temesvary, Judit - 2019 - This draft: May 2019

We combine a rarely accessed BIS database on bilateral cross-border lending flows with cross-country data on macroprudential regulations. We study the interaction between the monetary policy of major international currency issuers (USD, EUR and JPY) and macroprudential policies enacted in source...

Persistent link: https://www.econbiz.de/10012181321

The Effect of Central Bank Liquidity Injections on Bank Credit Supply

Carpinelli, Luisa; Crosignani, Matteo - 2017

We study the effectiveness of central bank liquidity injections in restoring bank credit supply following a wholesale … funding dry-up. We combine borrower-level data from the Italian credit registry with bank security-level holdings and analyze … that expands eligible collateral, we show that banks more affected by the dry-up use this facility to restore their credit …

Persistent link: https://www.econbiz.de/10014352393

Did QE Lead Banks to Relax Their Lending Standards? Evidence from the Federal Reserve's Lsaps

Kurtzman, Robert; Luck, Stephan; Zimmermann, Tom - 2017

Using confidential loan officer survey data on lending standards and internal risk ratings on loans, we document an effect of large-scale asset purchase programs (LSAPs) on lending standards and risk-taking. We exploit cross-sectional variation in banks? holdings of mortgage-backed securities to...

Persistent link: https://www.econbiz.de/10014352384

A unifed measure of Fed monetary policy shocks

Bu, Chunya; Rogers, John H.; Wu, Wenbin - 2019

Identification of Fed monetary policy shocks is complex, in light of the distinct policymaking regimes before, during, and after the ZLB period of December 2008 to December 2015. We develop a heteroscedasticity-based partial least squares approach, combined with Fama-MacBeth style cross-section...

Persistent link: https://www.econbiz.de/10012181228

Employment effects of unconventional monetary policy : evidence from QE

Luck, Stephan; Zimmermann, Tom - 2018

increase in overall employment after QE3 is sizable and can be attributed to the supply of additional credit to firms. To s …

Persistent link: https://www.econbiz.de/10012016375