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International Lending of Dutch Insurers and Pension Funds: the Impact of ECB Monetary Policy and Prudential Policies in the Host Country

Author

Listed:
  • Jon Frost

    (De Nederlandsche Bank
    VU University
    Financial Stability Board)

  • Patty Duijm

    (De Nederlandsche Bank)

  • Clemens Bonner

    (De Nederlandsche Bank
    VU University)

  • Leo Haan

    (De Nederlandsche Bank)

  • Jakob Haan

    (De Nederlandsche Bank
    University of Groningen
    CESifo)

Abstract

We analyze the relationship between ECB monetary policy and prudential policies in the host country and international lending by Dutch insurers and pension funds, using confidential institution-specific data. Our results suggest that insurers and pension funds do not significantly change their foreign lending in response to ECB policy changes, proxied by a shadow rate capturing both conventional and unconventional monetary policies. However, our findings suggest that these financial institutions do increase foreign lending when banks in the host country are more constrained by prudential regulation, pointing to a substitution effect from banks to non-banks.

Suggested Citation

  • Jon Frost & Patty Duijm & Clemens Bonner & Leo Haan & Jakob Haan, 2019. "International Lending of Dutch Insurers and Pension Funds: the Impact of ECB Monetary Policy and Prudential Policies in the Host Country," Open Economies Review, Springer, vol. 30(3), pages 445-456, July.
    • Handle: RePEc:kap:openec:v:30:y:2019:i:3:d:10.1007_s11079-019-09531-z
    DOI: 10.1007/s11079-019-09531-z
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    References listed on IDEAS

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    Cited by:

    1. Mary Everett & Jakob de Haan & David‐Jan Jansen & Peter McQuade & Anna Samarina, 2021. "Mortgage lending, monetary policy, and prudential measures in small euro‐area economies: Evidence from Ireland and the Netherlands," Review of International Economics, Wiley Blackwell, vol. 29(1), pages 117-143, February.
    2. Jon Frost, 2020. "The economic forces driving FinTech adoption across countries," Working Papers 663, DNB.

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    More about this item

    Keywords

    Monetary policy; Prudential policy; Pension funds; Insurance companies; Spillovers;
    All these keywords.

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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