Showing 1 - 10 of 704
In order to obtain a better understanding of monetary transmission, this paper assesses the importance of the interest rate and credit channels on business fixed investment in the German manufacturing sector. Our panel of financial statements contains 44,345 observations for 6,408 firms. We...
Persistent link: https://www.econbiz.de/10011419985
This paper evaluates the effect of Chinese monetary policy shocks on credit creation through the shadow banking sector in mainland China. I identify monetary policy shocks by constructing a measure of monetary policy surprises based on changes to the 1-Year Interest Rate Swaps on the 7-Day Repo...
Persistent link: https://www.econbiz.de/10013241794
Banks are reluctant to tap central bank backup liquidity facilities and use the borrowed funds for loans to the real economy. We show that excessively parsimonious borrowing and lending can arise in a stigma-free model where the banking sector has an incentive to overissue deposits. Banks don't...
Persistent link: https://www.econbiz.de/10015179817
The growth and deepening of financial markets entailed the expectation that the bank lending channel of monetary policy transmission would lose its importance. The paper explains why, on the contrary, the banking sector has become a major locus of origination and amplification of macro-financial...
Persistent link: https://www.econbiz.de/10010430024
This paper evaluates whether fiscal and foreign exchange policy shocks can explain both credit and credit supply in Venezuela. Empirical evidence suggests that between 65 and 90 percent of credit growth is linked to the buildup of banks' deposits caused by the monetary effects of fiscal...
Persistent link: https://www.econbiz.de/10011660860
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 credit growth dynamics and bank lending...
Persistent link: https://www.econbiz.de/10012828873
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 credit dynamics and bank lending channels vary...
Persistent link: https://www.econbiz.de/10012834089
As the euro area has a predominantly bank-based financial system, changes in the composition and strength of banks' balance sheets can have very sizeable implications for the transmission of monetary policy. This paper provides an overview of developments in banks' balance sheets, profitability...
Persistent link: https://www.econbiz.de/10012871122
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 credit growth dynamics and bank lending...
Persistent link: https://www.econbiz.de/10012840841
We study the relationship between the strength of the bank credit channel (BCC) of monetary policy transmission and real GDP growth in Tunisia using quarterly commercial bank-level data between 2008 and 2019. We find evidence of the existence of the bank credit channel in Tunisia in both its...
Persistent link: https://www.econbiz.de/10012256760