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Does monetary policy affect lending? Evidence from some panel data

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  • Peña, Guillermo

Abstract

This paper examines the impact of monetary policy on bank lending. There is also a contribution to the empirical evidence of the fact that lending expansion was one of the causes of the Great Recession. We develop a dynamic model following the GMM method in two steps using a no-balanced panel of 36 countries of the OECD and the European Union of the period between 1961 and 2012. The study focuses on some aggregated bank sector characteristics in different countries. We show the existence of a bank sector lending channel. We also conclude that the years 2003-2004 provoked a significant loan increase that led to the financial crisis started in 2007.

Suggested Citation

  • Peña, Guillermo, 2015. "Does monetary policy affect lending? Evidence from some panel data," MPRA Paper 103882, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:103882
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    References listed on IDEAS

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    Cited by:

    1. Guillermo Peña, 2017. "Money, Lending and Banking Crises," Economic Papers, The Economic Society of Australia, vol. 36(4), pages 444-458, December.

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    More about this item

    Keywords

    Monetary policy; financial crisis; bank lending channel;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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