Using country-level and bank-level data from several European emerging economies, we document two new facts about lending in reserve currency and monetary policy transmission. Monetary policy enacted by non-reserve currency issuers transmits across countries through bilateral trade linkages and...

We examine how domestic and foreign monetary policy affect the supply of bank credit when bank lending is denominated in domestic and foreign currencies, and how domestic macroprudential regulation shapes the transmission of foreign monetary spillovers. We use a country-level and a bank-level...