This paper provides empirical evidence regarding the bank lending channel under Turkey's unconventional monetary policy framework. Towards this end, impact of changes in stance on credit growth is investigated using a dynamic panel data modelling approach between 2011 and 2019. The results reveal cross-sectional heterogeneity loan supply Turkish banks following change policy, which implies an o...

This paper examines the association between bank debt maturity and relationship lending using a unique survey sample of 3,366 SMEs from 19 European countries. The knowledge of how the institutional environment shapes relationship lending helps us to understand how current institutional changes, such as Basel II, might affect the SME-bank relationship and hence, SME access to financing. Our resu...

T his paper aims to understand the structure and determinants of international bank l ending among APEC economies. Specifically, this paper first aims to analyze whether Australia Canada Japan Chinese Taipei and the United States, which are the only APEC members for which international borrowing data are available, tend to lend more intensively to other APEC members than to non-APEC countries ....

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...

With bank-level data from 81 developing countries, the paper shows that increased foreign bank presence is associated with increased reliance on non-deposit based funding, which leads to higher interest rate spreads, less credit to the private sector, and higher volatility in bank loans. Foreign bank entry significantly reduces domestic banks’ share of deposits while foreign banks typically all...

We propose a simple model of the banking system and analyze stochastic stability of inter-bank lending. The monetary reserves of banks are modeled as a system of interacting Feller diffusions. The model is simple enough for mathematical analysis, yet captures how lending preferences of banks affect possible multiple bank failures. In our model we quantify the lending preference from one bank to...

The financial intermediation sector is important not only for channeling resources from agents in excess of funds to agents in need of funds (lending channel). By issuing liabilities it also creates financial assets held by other sectors of the economy for insurance purpose. When the intermediation sector creates less liabilities or the value of outstanding liabilities falls, agents are less wi...