The 'credit channel' theory of monetary policy transmission holds that informational frictions in credit markets worsen … components to monetary policy shocks and describe how the credit channel helps explain the facts. We discuss two main components … credit aggregates are not valid tests of this theory …

Using credit-registry data for Spain and Peru, we document that four main types of commercial credit—asset-based loans …, cash-flow loans, trade finance and leasing—are easily identifiable and represent the bulk of corporate credit. We show that … financial crisis propagating through banks’ balance sheets are primarily driven by cash-flow loans, whereas asset-based credit …

first examine the impact of economic policy uncertainty on aggregate bank credit growth. Then we analyze commercial bank … macroeconomic controls, economic policy uncertainty affected bank level credit growth, and (ii) whether there is variation in the … on bank credit growth. Since this impact varies meaningfully with some bank characteristics – particularly the overall …

This paper studies the limitations of monetary policy transmission within a credit channel frame- work. We show that …, under certain circumstances, the credit channel transmission mechanism fails in that liquidity injections by the central … bank into the banking sector are hoarded and not lent out. We use the term 'credit traps' to describe such situations and …

corporate credit risk and thus corporate yields for QE1, and (b) Treasuries-only purchases in QE2 had a disproportionate effect …