Bisetti, Emilio; Karolyi, Stephen A.; Lewellen, Stefan - 2021
We provide causal evidence of the deposits channel of monetary policy transmission in a newsetting, but show that bank … monetarypolicy decreases bank funding costs and stimulates bank entry, which in turn stimulatesaggregate credit provision. Using … novel shocks to bank entry barriers, we confirm the model’smain predictions: the deposits channel exists, but local …