strength of the bank lending channel, recent evidence shows that bank-specific characteristics can have a large impact on the …

-section of individual bank portfolio decisions. For this purpose, an augmented version of the DSGE model of Gertler and Karadi … (2013), featuring a segmented banking sector, is estimated for the euro area and combined with a bank portfolio optimisation … approach using granular bank level data. An important feature of our modelling approach is that it captures the heterogeneity …

find that the policy tightening is followed by a worsening of the budget deficit; firms cut on their demand for bank loans …. Consistent with the bank lending channel of monetary policy at work, the interest rate hike is followed by a short …

economy. In our model, producers are financed by both bank debt and equity, and face a mix of systematic and idiosyncratic … macro-prudential policy is represented by a convex dependence of bank capital requirements on the quantity of …

This paper conducts the first empirical study of the bank balance sheet channel using data on discouraged and … effect of monetary policy and the business cycle on bank lending and risk-taking. Identification rests on exploiting 1) the … exogeneity of monetary policy to local business cycles, and 2) firm-level and bank-level data to separate the supply of credit …

We find evidence of a bank lending channel for the euro area operating via bank risk. Financial innovation and the new … ways to transfer credit risk have tended to diminish the informational content of standard bank balance-sheet indicators …. We show that bank risk conditions, as perceived by financial market investors, need to be considered, together with the …

crucial complementarities between supervision and monetary policy: centralised supervision offsets excessive bank risk …

We use a confidential euro area bank-level data set of close to 250 banks to assess outward and inward spillovers of … unconventional monetary policies on bank lending. We find that euro area banks increase lending to the rest of the world in response … more on internal capital markets. This suggests that bank-specific supply effects, stemming from banks' increased ability …