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Banks and monetary transmission in Europe: empirical evidence

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  • G.J. DE BONDT

    (De Nederlandsche Bank)

Abstract

The present work examines bank lending behaviour in continental Europe. An empirical analysis is performed using bank-level panel data for fiscal years 1990-1995 to investigate the existence of a bank lending and balance sheet channel in Europe. The results reveal that monetary policy in continental Europe matter most for small banks and for banks with relatively illiquid balance sheets. Most of the findings point to the existence of a bank lending channel in Germany and the Netherlands.

Suggested Citation

  • G.J. De Bondt, 1999. "Banks and monetary transmission in Europe: empirical evidence," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 52(209), pages 149-168.
    • Handle: RePEc:psl:bnlqrr:1999:22
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    References listed on IDEAS

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    More about this item

    Keywords

    Banking industry; Europe; Economic policy;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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