Bank Portfolios and the Bank Lending Channel in Austria
نویسنده
چکیده
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 nonfinancial enterprises is found to be responsible for this result. Several explanations are discussed, including peculiarities of the Austrian banking sector.
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