Building on the work of Sorge and Virolainen (2006), we revisit the data on aggregate Finnish bank loan losses from the …

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 …

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 …

timetable that will end in the authorities stepping into the bank while it still has positive capital, if the earlier stages are …