In lands of foreign currency credit, bank lending channels run through?
- We analyze the differential impact of domestic and foreign monetary policy on the local supply of bank credit in domestic and foreign currencies. We analyze a novel, supervisory dataset from Hungary that records all bank lending to firms including its currency denomination. Accounting for time-varying firm-specific heterogeneity in loan demand, we find that a lower domestic interest rate expands the supply of credit in the domestic but not in the foreign currency. A lower foreign interest rate on the other hand expands lending by lowly versus highly capitalized banks relatively more in the foreign than in the domestic currency.
Author: | Steven OngenaORCiDGND, Ibolya Schindele, Dzsamila Vonnák |
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URN: | urn:nbn:de:hebis:30:3-351060 |
URL: | http://ssrn.com/abstract=2507688 |
DOI: | https://doi.org/10.2139/ssrn.2507688 |
Parent Title (English): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 474 |
Series (Serial Number): | CFS working paper series (474) |
Publisher: | Center for Financial Studies |
Place of publication: | Frankfurt, M. |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2014 |
Year of first Publication: | 2014 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2014/10/20 |
Tag: | bank balance-sheet channel; foreign currency lending; monetary policy |
Issue: | This Draft: October, 2014 |
Page Number: | 51 |
HeBIS-PPN: | 351156518 |
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): | Deutsches Urheberrecht |