IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/17175.html
   My bibliography  Save this paper

Risk-Taking and Monetary Policy Transmission: Evidence from loans to SMEs and large firms

Author

Listed:
  • Kalemli-Özcan, Sebnem
  • ,
  • ,

Abstract

Using administrative ï¬ rm-bank-loan level data, we document new facts about the U.S. credit market and monetary policy transmission. Private ï¬ rms that are mostly small-medium-size-enterprises (SMEs) borrow from banks and use their enterprise’s continuation value as collateral. Relative to large publicly listed ï¬ rms, monetary expansions increase highly levered SMEs’ demand for credit and their borrowing capacity because their continuation values rise and their ability to repay debt improves. Our results imply that the effectiveness of monetary policy depends on both the ï¬ rm-size distribution and the type of collateral pledged.

Suggested Citation

  • Kalemli-Özcan, Sebnem & , & ,, 2022. "Risk-Taking and Monetary Policy Transmission: Evidence from loans to SMEs and large firms," CEPR Discussion Papers 17175, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17175
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP17175
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:17175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.