The importance of banks for the transmission of monetary policy has been a major topic in monetary economics for some time, and several factors have served to heighten that interest recently. One such factor has been the slower than expected U.S. recovery from the 1990-91 recession, which was accompanied by slow growth in bank lending. This spawned a substantial literature on regulatory-induced...

Investigators exammning problems with credit availability during the most recent recession have been unable to provide definitive evidence that the decline in bank loans was, at least in part, a supply phenomenon. Furthermore, they have not focused on the subset of loans made to borrowers most likely to be dependent on bank financing. This study overcomes these flaws. By examining formal regula...

The potential impact of interconnected financial institutions on interbank financial systems is a financial stability concern for central banks and regulators. A number of algorithms/methods have been developed to extrapolate latent interbank risk exposures. However, most use highly stylized network models and reconstruction methods with global optimality lending allocation approaches such as m...

Government ownership of banks is very common in countries other than the United States. This paper provides cross-country, bank-level empirical evidence about political influences on these banks. It shows that government-owned banks increase their lending in election years relative to private banks. This effect is robust to controlling for country-specific macroeconomic and institutional factor...

The World Bank Group in 2013 made the elimination of extreme poverty by 2030 a central institutional focus and purpose. This paper, based on an evaluation conducted by the Independent Evaluation Group of the World Bank Group, examines how, and how well, the Bank uses feedback loops to enhance the poverty focus of its operations. Feedback loops are important for every element of the results chai...

In recent years, considerable research has they take as evidence for a bank lending explored the role played by bank lending in channel. the transmission of monetary shocks. In conWe reexamine KSW's analysis. In contrast trast to the traditional Keynesian transmission to KSW's use of aggregate data, we analyze mechanism that operates strictly through inthe mix of bank and nonbank debt separatel...

This study investigates the effect of banks’ dual holding on bank lending and firms’ investment decisions using a sample of listed firms in China. We find that dual holding leads to easier access to bank loans, a result that is more pronounced for non-state-owned enterprises (non-SOEs) than SOEs. We also find that dual holding distorts banks’ lending decisions and harms the investment efficienc...

How does the internal organization of a foreign aid donor affect its aid allocation decisions? Despite the voluminous literature on the political economy of foreign aid, little systematic scholarship exists on this topic. This paper analyzes the allocations of the International Development Association (IDA), the World Bank’s lending arm for the poorest countries, to all eligible countries betwe...

We combine a rarely accessed BIS database on cross-border lending flows with cross-country data macroprudential regulations. find significant interactions between the monetary policy of major international currency issuers (USD, EUR and JPY) policies in source (home) banking systems. Consistent bank channel, easing home country amplifies effect issuers' lending. For instance, UK negative impact...