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Nonbanks, banks, and monetary policy: U.S. loan-level evidence since the 1990s

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dc.contributor.author Elliott, David, 1947-
dc.contributor.author Meisenzahl, Ralf R.
dc.contributor.author Peydró, José-Luis
dc.contributor.author Turner, Bryce C.
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2020-05-25T09:26:55Z
dc.date.available 2020-05-25T09:26:55Z
dc.date.issued 2019-11-29
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1679
dc.identifier.citation
dc.identifier.uri http://hdl.handle.net/10230/44719
dc.description.abstract We show that credit supply effects and associated real effects of monetary policy depend on the size of nonbank presence in the respective lending market. Nonbank presence also alters how monetary policy affects the distribution of risk. For identification, we use exhaustive loan-level data since the 1990s and Gertler-Karadi (2015) monetary policy shocks. First, different from the literature showing that low monetary policy rates increase credit supply and risk-taking by banks, we find that higher monetary policy rates shifts credit supply for corporates, mortgages, and consumers shifts from regulated banks to less regulated, more fragile nonbanks. Moreover, this shift is more pronounced for ex-ante riskier borrowers. Second, nonbanks reduce the effectiveness of the bank lending channel of monetary policy at the loan-level. However, this reduction varies substantially across lending markets. Total credit and real effects are largely neutralized in consumer loans and the associated consumption, but not in corporate loans and investment.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1679
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Nonbanks, banks, and monetary policy: U.S. loan-level evidence since the 1990s
dc.title.alternative
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2020-05-25T09:26:10Z
dc.subject.keyword negative rates
dc.subject.keyword non-standard monetary policy
dc.subject.keyword reach-for-yield
dc.subject.keyword securities
dc.subject.keyword banks.
dc.subject.keyword Macroeconomics and International Economics
dc.rights.accessRights info:eu-repo/semantics/openAccess

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