Building on Cecchetti and Li (2005), we show that the bank lending channel affects monetary policy trade-offs only when … monetary policy model. In our calibrated model the resulting impact of the bank lending channel on output-inflation trade …-offs is quantitatively small and of ambiguous sign. When bank capital varies counter cyclically and bank loan rates have a …

of a monopoly bank, an increase in the bank's capital-to-loans ratio always weakens the transmission of monetary policy … to bank lending. In the case of competitive banks, an increase in the capital-to-loans ratio weakens the transmission of … monetary policy to aggregate bank lending, up to a critical level. <p> Using a data set covering the Finnish banking sector in …

In this paper we test the hypothesis that credit policies are pro-cyclical. Our approach is based on a stochastic … household borrowers during a huge cycle and its aftermath yields evidence of time-varying credit policy. We find that the focus … of credit policy changed from collateral to current income during the cycle. Instead of a credit crunch, ie, an overall …

This paper tests for the presence of a credit channel (particularly a bank-lending sub-channel) for monetary policy in … with the existence of a broad credit channel, whereas the bank-lending channel seems to be operational only under certain … suggests the existence of a clear relationship between the presence of a credit (bank lending) channel, the efficiency level of …

strongest for card payments, followed by credit transfers and direct debits. Cheque payments are found to have a relatively low …

One of the most important recent innovations in financial markets has been the development of credit derivative … products that allow banks to more actively manage their credit portfolios than ever before. We analyse the effect that access … these markets as a control group. We find that banks that adopt advanced credit risk management techniques (proxied by the …

The 5th joint SUERF/Bank of Finland joint conference was held in Helsinki on 13 June 2013. The general theme of the …