Wang, Yifei; Whited, Toni M.; Wu, Yufeng; Xiao, Kairong - 2021
We quantify the impact of bank market power on monetary policy transmission through banks to borrowers. We estimate a …-through of these costs to borrowers and depositors, while facing capital and reserve regulation. We find that bank market power … explains much of the transmission of monetary policy to borrowers, with an effect comparable to that of bank capital regulation …