Financial technologies and the effectiveness of monetary policy transmission

Iftekhar Hasan, Boreum Kwak, Xiang Li

This study investigates whether and how financial technologies (FinTech) influence the effectiveness of monetary policy transmission. We use an interacted panel vector autoregression model to explore how the effects of monetary policy shocks change with regional-level FinTech adoption. Results indicate that FinTech adoption generally mitigates monetary policy transmission to real GDP, consumer prices, bank loans, and housing prices, with the weakened transmission to bank loan growth being the most pronounced. The relaxed financial constraint, regulatory arbitrage, and intensified competition are the possible mechanisms underlying the mitigated transmission.

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Year of publication:	[2023?] ; This version: April 3, 2023
Authors:	Hasan, Iftekhar ; Kwak, Boreum ; Li, Xiang
Institutions:	Leibniz-Institut für Wirtschaftsforschung Halle (issuing body)
Publisher:	Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
Subject:	monetary policy \| financial technology \| interacted panel VAR

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Extent:	1 Online-Ressource (III, 50, A11 Seiten, 2,15 MB) Diagramme
Series:	IWH-Diskussionspapiere. - Halle, S. : IWH, ISSN 2194-2188, ZDB-ID 2836591-4. - Vol. 2020, no. 26 (December 2020) [rev.]
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/270743 [Handle]
Classification:	C32 - Time-Series Models ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; G21 - Banks; Other Depository Institutions; Mortgages ; G23 - Pension Funds; Other Private Financial Institutions
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014247067