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We model how an information asymmetry between the lending bank and the applying firm about the currency structure of firm revenues may affect loan currency choice. Our framework features a trade-off between the lower cost of foreign currency debt and the costs of currency induced loan default....
Persistent link: https://www.econbiz.de/10013092463
European supervisors aggressively requested more capital at large banks. That may cut credit to the economy. We confirm that especially larger banks cut loans while less-significant banks partly offset that credit drop. Moreover, we identify nasty spillovers from that interaction. Specifically,...
Persistent link: https://www.econbiz.de/10012507218
How does domestic monetary policy in systemic countries spillover to the rest of the world? This paper examines the transmission channel of domestic monetary policy in the cross-border context. We use exogenous shocks to monetary policy in systemically important economies, including the U.S.,...
Persistent link: https://www.econbiz.de/10012858392
Persistent link: https://www.econbiz.de/10011377677
This paper exploits a novel bank-level monthly dataset to assess the effects of global liquidity on the global flows of euro area banks. The period associated with the European sovereign debt crisis has witnessed increased growth in euro area bank claims on extra-euro area residents, against a...
Persistent link: https://www.econbiz.de/10011446311
This article assesses the impact of the targeted longer-term refinancing operations (TLTROs) of the European Central Bank (ECB) on the credit supply of the euro area banks. An empirical approach is used that permits distinction between the direct and indirect effects of the TLTROs. The direct...
Persistent link: https://www.econbiz.de/10012868275
The monetary authorities affect the macroeconomic activity through various channels of influence. This paper examines the bank lending channel, which considers how central bank actions affect deposits, loan supply, and real spending. The monetary authorities influence deposits and loan supplies...
Persistent link: https://www.econbiz.de/10013008023
of fiscal and monetary policy (Bankers' Europe). On the other, there is apprehension that inflation and monetary turmoil … may be back in Europe under the pressure of deficit-prone countries (Workers' Europe). Is there a rationale for such … deficit bias (in line with the worries of Workers' Europe addressed by the "stability pact") as well as an excess monetary …
Persistent link: https://www.econbiz.de/10014219444
How does domestic monetary policy in systemic countries spillover to the rest of the world? This paper examines the transmission channel of domestic monetary policy in the cross-border context. We use exogenous shocks to monetary policy in systemically important economies, including the U.S.,...
Persistent link: https://www.econbiz.de/10012859025
Does European economic integration create more inequality between domestic regions, or is the opposite true? We show that a general answer to this question does not exist, and that the outcome depends on the liberalization scenario. In order to examine the impact of European and international...
Persistent link: https://www.econbiz.de/10013160410