framework prevalent in LICs drastically reduces the role of securities markets and increases the cost of bank lending to private … properly, the traditional monetary transmission channels (interest rate, bank lending, and asset price) are impaired. The … exchange rate channel, on the other hand, tends to be undermined by central bank intervention in the foreign exchange market …

income gap also predicts the sensitivity of bank lending to interest rates, both for commercial & industrial loans and for … gap distribution to increase lending by about 1.6 percentage points annually relative to a bank at the 25th percentile. We … conclude that banks' exposure to interest rate risk is an important determinant of the bank-level intensity of the lending …

low-income countries. Transmission is measured by the impulse response of bank lending rates to monetary policy shocks … there is wide variation in the response of bank lending rates to a monetary policy innovation across countries. Monetary … policy shocks are more likely to affect bank lending rates in the theoretically expected direction in countries that have …

the compositional supply effects through cross-border and relationship lending. For empirical identification, we draw on … the proprietary bank-to-bank European interbank dataset extracted from Target2 and also exploit the Lehman and sovereign …-border lending after the Lehman failure; for banks headquartered in periphery countries, the impact is quantitatively stronger in the …