The bank lending channel of monetary policy in EU countries during the global financial crisis

2017 ◽  
Vol 67 ◽  
pp. 10-22 ◽  
Author(s):  
Tomáš Heryán ◽  
Panayiotis G. Tzeremes
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Bank Lending ◽  
Bank Lending Channel ◽  
Eu Countries ◽  
Lending Channel ◽  
The Global Financial Crisis

Determinants of Bank Lending in Europe and the United States

2018 ◽  
Author(s):  
Brunella Bruno ◽  
Alexandra D'Onofrio ◽  
Immacolata Marino
Keyword(s):  
United States ◽  
Global Financial Crisis ◽  
Bank Lending ◽  
The United States ◽  
Bank Lending Channel ◽  
Loan Portfolio ◽  
Government Bonds ◽  
Lending Channel ◽  
Main Bank ◽  
The Global Financial Crisis

We provide a comprehensive analysis of the main drivers of bank lending in Europe and the United States over the period from 2008 to 2014. We relate bank characteristics prior to the global financial crisis to their lending behaviour during and after the crisis period. Our analysis confirms the existence of a bank lending channel, that seems stronger in Europe than in the United States, especially if we look at corporate loans rather than at the whole loan portfolio. We uncover that the main bank characteristics affecting lending are size, capitalization, liquidity, and ownership structure, as well as, to a lesser extent, reliance on deposits and exposure to government bonds. Some of these factors have indeed shielded bank lending as predicted, but the results are not always in the expected direction, which points to the existence of a revised version of the traditional bank lending channel.

scholarly journals Unconventional U.S. Monetary Policy: New Tools, Same Channels?

2018 ◽  
Vol 11 (4) ◽  
pp. 71 ◽  
Author(s):  
Martin Feldkircher ◽  
Florian Huber
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Large Scale ◽  
Global Financial Crisis ◽  
Extended Period ◽  
Bank Lending ◽  
Distinct Pattern ◽  
Output Growth ◽  
Monetary Policy Shock ◽  
The Global Financial Crisis

In this paper, we compare the transmission of a conventional monetary policy shock with that of an unexpected decrease in the term spread, which mirrors quantitative easing. Employing a time-varying vector autoregression with stochastic volatility, our results are two-fold: First, the spread shock works mainly through a boost to consumer wealth growth, while a conventional monetary policy shock affects real output growth via a broad credit/bank lending channel. Second, both shocks exhibit a distinct pattern over our sample period. More specifically, we find small output effects of a conventional monetary policy shock during the period of the global financial crisis and stronger effects in its aftermath. This might imply that when the central bank has left the policy rate unaltered for an extended period of time, a policy surprise might boost output particularly strongly. By contrast, the spread shock has affected output growth most strongly during the period of the global financial crisis and less so thereafter. This might point to diminishing effects of large-scale asset purchase programs.

Conclusions

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Developing Economies ◽  
Quantitative Easing ◽  
Unconventional Monetary Policy ◽  
Advanced Economies ◽  
The Global Financial Crisis ◽  
Zero Bound

The preceding chapters have examined the deepened integration of emerging and developing economies (EDEs) into the international financial system in the new millennium and their changing vulnerabilities to external financial shocks. They have discussed the role that policies in advanced economies played in this process, including those that culminated in the global financial crisis and the unconventional monetary policy of zero-bound interest rates and quantitative easing adopted in response to the crisis, as well as policies in EDEs themselves....

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