The views expressed are those of the authors and do not involve the responsibility of the institutions to which they belong. [...] www.suerf.org/publications/ SUERF Policy Brief, No 1002 1 Nonbank Lending and the Transmission of Monetary Policy Introduction Traditional banks often reduce lending in response to a monetary tightening, a phenomenon known as the bank lending channel of monetary policy (Kashyap and Stein, 1994,. [...] In this policy brief, we summarize our findings in Cucic and Gorea (2024) where we examine the role of nonbank lenders in the transmission of monetary policy in Denmark, focusing on their impact on corporate investment and household consumption. [...] One of the primary effects is the attenuation of the traditional bank lending channel of monetary policy. [...] Otto-Wagner-Platz 3 focus of the association is on the analysis, A-1090 Vienna, Austria discussion and understanding of financial The views expressed are those of the author Phone: +43-1-40420-7206 markets and institutions, the monetary (s) and not necessarily those of the instituti- www.suerf.org • suerf@oenb.at economy, the conduct of regulation, super- on(s) the author(s) is/are affiliated with.
Authors
Organizations mentioned
- Pages
- 5
- Published in
- Austria
Table of Contents
- Keywords Monetary policy nonbanks shadow banks Banks real effects JEL codes E51 E52 G23 1
- Dominic Cucic Danmarks Nationalbank Denis Gorea Bank for International Settlements 1
- Introduction Nonbank Lenders Step In 2
- Why are nonbanks able to increase lending during monetary contractions 3
- What are the consequences of increased nonbank lending for the real economy Conclusion 4
- References 5
- About the authors 5