A global lending channel unplugged? : does U.S. monetary policy affect cross‐border and affiliate lending by global U.S. banks?

  • We examine how U.S. monetary policy affects the international activities of U.S. Banks. We access a rarely studied US bank‐level dataset to assess at a quarterly frequency how changes in the U.S. Federal funds rate (before the crisis) and quantitative easing (after the onset of the crisis) affects changes in cross‐border claims by U.S. banks across countries, maturities and sectors, and also affects changes in claims by their foreign affiliates. We find robust evidence consistent with the existence of a potent global bank lending channel. In response to changes in U.S. monetary conditions, U.S. banks strongly adjust their cross‐border claims in both the pre and post‐crisis period. However, we also find that U.S. bank affiliate claims respond mainly to host country monetary conditions.

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Metadaten
Author:Judit Temesvary, Steven OngenaORCiDGND, Ann L. Owen
URN:urn:nbn:de:hebis:30:3-382816
URL:http://ssrn.com/abstract=2662457
DOI:https://doi.org/10.2139/ssrn.2662457
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 511
Series (Serial Number):CFS working paper series (511)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Date of Publication (online):2015/09/19
Date of first Publication:2015/09/19
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2015/10/08
Tag:bank lending channel; cross‐country analysis; global banking; monetary transmission
Issue:August 2015
Page Number:45
HeBIS-PPN:366777807
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License LogoDeutsches Urheberrecht