Bank Lending Channel of Monetary Policy: Evidence for Colombia, Using a Firms´ Panel
AbstractIn this paper we find empirical evidence of bank lending channel for Colombia, using a balanced panel data of about four thousand non-financial firms. We find that increases in the interest rate, proxiing for the monetary policy instrument, lead to a reduction in the proportion of bank loans, out of total debt, of the .rms. This bank lending channel amplifies the effect of the traditional interest rate channel, which leads to a reduction in total debt and spending when monetary policy tightens. Our result agrees with, and complements, those obtained by Gómez González and Grosz (2007), who provide evidence of the existence of a bank lending channel in Colombia using bank-specific financial variables.
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Bibliographic InfoPaper provided by BANCO DE LA REPÚBLICA in its series BORRADORES DE ECONOMIA with number 005219.
Date of creation: 07 Jan 2009
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Other versions of this item:
- José Eduardo Gómez & Paola Morales Acevedo, . "Bank Lending Channel of Monetary Policy: Evidence for Colombia, Using a Firms´ Panel," Borradores de Economia 545, Banco de la Republica de Colombia.
- Col - Mathematical and Quantitative Methods - - - - -
- Cla - Mathematical and Quantitative Methods - - - - -
- J - Labor and Demographic Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-17 (All new papers)
- NEP-CBA-2009-01-17 (Central Banking)
- NEP-DEV-2009-01-17 (Development)
- NEP-MAC-2009-01-17 (Macroeconomics)
- NEP-MON-2009-01-17 (Monetary Economics)
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