The international bank lending channel of monetary policy rates and QE: credit supply, reach-for-yield, and real fffects
File(s)MexicoMP FinalDraft 20150255 clean.pdf (589.35 KB)
Accepted version
Author(s)
Morais, Bernardo
Peydro, Jose-Luis
Roldan-Pena, Jessica
Ruiz-Ortega, Claudia
Type
Journal Article
Abstract
We identify the international credit channel by exploiting Mexican supervisory data sets and foreign monetary policy shocks in a country with a large presence of European and U.S. banks. A softening of foreign monetary policy expands credit supply of foreign banks (e.g., U.K. policy affects credit supply in Mexico via U.K. banks), inducing strong firm‐level real effects. Results support an international risk‐taking channel and spillovers of core countries’ monetary policies to emerging markets, both in the foreign monetary softening part (with higher credit and liquidity risk‐taking by foreign banks) and in the tightening part (with negative local firm‐level real effects).
Date Issued
2019-02-01
Date Acceptance
2017-03-24
Citation
The Journal of Finance, 2019, 74 (1), pp.55-90
ISSN
0022-1082
Publisher
Wiley
Start Page
55
End Page
90
Journal / Book Title
The Journal of Finance
Volume
74
Issue
1
Copyright Statement
© 2018 the American Finance Association. This is the accepted version of the following article: MORAIS, B. , PEYDRÓ, J. , ROLDÁN‐PEÑA, J. and RUIZ‐ORTEGA, C. (2019), The International Bank Lending Channel of Monetary Policy Rates and QE: Credit Supply, Reach‐for‐Yield, and Real Effects. The Journal of Finance, 74: 55-90, which has been published in final form at https://doi.org/10.1111/jofi.12735
Identifier
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000456806700002&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=1ba7043ffcc86c417c072aa74d649202
Subjects
Social Sciences
Business, Finance
Economics
Business & Economics
LIQUIDITY SHOCKS EVIDENCE
FINANCIAL STABILITY
RISK-TAKING
TRANSMISSION
GLOBALIZATION
MANAGEMENT
SELECTION
LEVERAGE
MARKETS
ACCESS
Publication Status
Published
Date Publish Online
2018-10-25