Loan types and the bank lending channel

Business Cycles, Monetary Policy, and Bank Lending: Identifying the bank balance sheet channel with firm-bank match-level loan data

This paper examines the impact of business cycles and monetary policy on bank loan supply. To this end, we use a unique firm-bank match-level dataset covering listed firms in Japan that allows us to control for firms’ time-varying unobservable loan demand and endogenous bank-firm matching, so that we can identify the effects of business cycles and monetary policy on loan supply through the bank...

Bank Portfolios and the Bank Lending Channel in Austria

This paper analyzes the adjustments in the structure of assets and liabilities of the Austrian banking sector taking place after a monetary tightening. Following increases in short-term interest rates, the share of loans to non-banks in interest-earning assets rises, which is at odds with predictions from the bank lending channel of monetary policy transmission. An extension of credit to nonfin...

Federal Home Loan Bank Lending to Community Banks : Are Targeted

The Bank Lending Channel in Chile

role of credit in the economy by suggesting that the capital structure of the firm was mostly irrelevant. Moreover, the strong and robust correlation between money and real variables found in the empirical literature of the 1960s provided strong support for the view that the main transmission mechanism for monetary policy operates through changes in the cost of capital and their impact on inves...

Liquidation, Asset Prices and the Recycling Channel of Bank Lending

This paper investigates the e¤ects on the asset market of bank actions in dealing with their non-performing loans. It is demonstrated that liquidation of bad loans may not be as detrimental to asset prices as commonly argued, because funds recouped from liquidation can be recycled into new loans which support the asset market. While capital regulation protects the health of banks, it may limit ...