scholarly journals Monetary Policy and Cross-Border Interbank Market Fragmentation: Lessons from the Crisis

2018 ◽  
Author(s):  
Tobias Sebastian Blattner ◽  
Jonathan Swarbrick
Keyword(s):  
Monetary Policy ◽  
Interbank Market ◽  
Cross Border ◽  
Market Fragmentation

scholarly journals Monetary Policy and Cross-Border Interbank Market Fragmentation: Lessons from the Crisis

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Tobias S. Blattner ◽  
Jonathan M. Swarbrick
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Structure ◽  
Real Economy ◽  
Interbank Market ◽  
Cross Border ◽  
Market Fragmentation ◽  
Initial Shock ◽  
Asset Purchases

AbstractWe present a two-country model featuring risky lending and cross-border interbank market frictions. We find that (i) the strength of the financial accelerator, when applied to banks operating under uncertainty in an interbank market, will critically depend on the economic and financial structure of the economy; (ii) adverse shocks to the real economy can be the source of banking crisis, causing an increase in interbank funding costs, aggravating the initial shock; and (iii) asset purchases and central bank long-term refinancing operations can be effective substitutes for, or supplements to, conventional monetary policy.

Spillovers of the United States’ Unconventional Monetary Policy to Emerging Asia

2019 ◽  
pp. 118-145
Author(s):  
Ying Xu ◽  
Hai Anh La
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Bank Lending ◽  
The United States ◽  
Quantitative Easing ◽  
Unconventional Monetary Policy ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Cross Border ◽  
Syndicated Loan Market

This chapter assesses the spillover effects of the United States’ unconventional monetary policy on the Asian credit market. With a focus on cross-border bank lending, it employs firm-level loan data with regard to the syndicated loan market and measures the international bank lending channel through changes in United States dollar-denominated loans extended to Asian borrowers. It finds that the growth of dollar credit in Asia increased substantially in response to quantitative easing in the US financial market. The results of this study confirm the existence of the bank lending channel in Asia and emphasize the role of credit flows in transmitting financial conditions. The chapter also provides new evidence of cross-border liquidity spillover in the syndicated loan market. It finds that the overall spillover effect was large but differed significantly in Asia by types of borrowing firms, financing purposes, and loan terms at different stages of the quantitative easing programmes.

scholarly journals Cross-border spillovers of monetary policy: What changes during a financial crisis?

2018 ◽  
Vol 89 ◽  
pp. 154-174 ◽  
Author(s):  
Luciana Barbosa ◽  
Diana Bonfim ◽  
Sónia Costa ◽  
Mary Everett
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Cross Border
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