This paper studies whether and how banks' technological innovations affect the bank lending channel of monetary policy … transmission. We first provide a theoretical model in which banks' technological innovation relaxes firms' earning-based bor rowing … constraints and thereby enlarges the response of banks' lending to mone tary policy changes. To test the empirical implications …

This paper studies whether and how banks' technological innovations affect the bank lending channel of monetary policy … transmission. We first provide a theoretical model in which banks' technological innovation relaxes firms' earning-based borrowing … constraints and thereby enlarges the response of banks' lending to monetary policy changes. To test the empirical implications, we …

Do banks use credit default swap hedging to substitute for loan sales? By tracking banks' lending exposures and CDS … positions on individual firms, we find that banks use CDS hedging to complement rather than to substitute for loan sales … suggests that banks sell CDS protection as credit enhancements to facilitate loan sales. This study employs identification …

​We test five hypotheses on whether banks use CDS to hedge corporate loans, provide credit enhancements, obtain … regulatory capital relief, and exploit banking relationship and private information. Linking large banks' CDS positions and … hypotheses, but mixed evidence for the hedging, banking relationship, and private information hypotheses. Banks buy and sell more …

We empirically examine three channels in the relation between banks' CDS trading and loan sales. The substitute channel …. The credit-enhancement channel predicts a positive relation between banks' CDS selling and loan sales. Using syndicated … loan share ownership data of U.S. banks over the period 2001–2013, we find that the complementary channel dominates the …

We test five hypotheses on whether banks use CDS to hedge corporate loans, provide credit enhancements, obtain … regulatory capital relief, and exploit banking relationship and private information. Using new data that link large banks' CDS … relief hypotheses, but mixed evidence for the hedging, banking relationship, and private information hypotheses. Banks buy …

arbitrage and competition between FinTech and banks are the possible mechanisms leading to a mitigated monetary policy …