TY  - UNPD
A1  - Beck, Günter
A1  - Kotz, Hans-Helmut
A1  - Zabelina, Natalia
T1  - Lost in translation? ECB's monetary impulses and financial intermediaries' responses
T2  - SAFE white paper series, 36
N2  - Non-bank (-balance sheet) based financial intermediation has become considerably more important over the last couple of decades. For the U.S., this trend has been discussed ever since the mid-1990s. As a consequence, traditional monetary transmission mechanisms, mainly operating through bank balance sheets, have apparently become less relevant. This in particular applies to the bank lending channel. Concurrently, recent theoretical and empirical work uncovered a "risk-taking channel" of monetary policy. This mechanism is not confined to traditional banks but has been found to operate also across the spectrum of financial intermediaries and intermediation devices, including securitization and collateralized lending/borrowing. In addition, recent empirical evidence suggests that the increasing importance of shadow-banking activities might have given rise to a so-called "waterbed effect". This is a mediating mechanisms, dampening or counteracting typically to be expected reactions to monetary policy impulses. Employing flow-of-funds data, we can document also for the Euro Area that a trend towards non-bank (not necessarily more 'market'-based) intermediation has occurred. This is, however, a fairly recent development, substantially weaker than in the U.S. Nonetheless, analyzing the response of Euro Area bank and nonbank financial intermediaries to monetary policy impulses, we find some notable behavioral differences between mainly deposit-funded and more 'market'-based financial intermediaries. We also detect, inter alia, the existence of a (still) fairly weak, but potentially policyrelevant, "waterbed" effect.
T3  - SAFE white paper series - 36 
KW  - non-bank financial intermediation
KW  - interest-rate channel
KW  - credit channel
KW  - risk-taking channel of monetary policy
KW  - market-based financial intermediation
KW  - monetary transmission mechanism
KW  - waterbed effect
Y1  - 2016
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/40060
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-400607
UR  - http://safe-frankfurt.de/de/policy-center/publikationen/detailsview/publicationname/lost-in-translation-ecbs-monetary-impulses-and-financial-intermediaries-responses.html
PB  - SAFE
CY  - Frankfurt am Main
ER  -