that well-functioning credit markets would reflect a bank channel for monetary policy at work, we test whether a change in … and the associated change in interest rate does not affect change in bank credit, change in total debt and the proportion … of bank credit in total debt for any of the firms. We discuss the policy implications of the findings. …

Bank leverage constraints can emerge from regulatory capital requirements as well as from central bank collateral … with the help of a bank money creation model in which central bank reserves have to be acquired to settle interbank … liabilities. In particular, we show that with regard to bank monitoring, monetary policy via collateral requirements leads to a …