When banks are faced with a funding shortage in money market wholesale funding, they partly substitute by tapping other … implications, which go beyond the balance sheets of banks affected by the funding shortage. Banks which are forced to seek … alternative funding sources ("affected" banks) crowd out other initially unaffected banks, which pay substantially more to retain …

We show that nonbanks (funds, shadow banks, fintech) reduce the effectiveness of tighter monetary policy on credit … since 1990s and Gertler-Karadi monetary policy shocks. Higher policy rates shift credit supply from banks to less …