We show that countercyclical liquidity policy smooths credit supply cycles, with stronger crisis effects. For … identification, we exploit the Brazilian supervisory credit register and liquidity policy changes on reserve requirements, that … affected banks differentially and have a monetary and prudential purpose. Liquidity policy strongly attenuates both the credit …

foreign lenders. Crisis shocks reduce the supply of cross-border liquidity, with stronger volume than pricing effects, thereby …, while—on the intensive margin—riskier borrower banks suffer more. Moreover, the cross-border liquidity crunch is … borrower. Nonstandard monetary policy improves interbank liquidity, but without fostering strong crossborder financial re-integration. …

We show that global liquidity limits the effectiveness of local monetary policy on credit markets. The mechanism is via … emerging market, Turkey. Softer global liquidity conditions attenuate the pass-through of local monetary policy tightening on …