Advanced Search
MyIDEAS: Login

Credit channels in Europe: bank-level panel data analyses

Contents:

Author Info

  • G.J. de Bondt
Registered author(s):

    Abstract

    This paper uses disaggregated data on bank balance sheets to test the existence of credit channels of monetary policy transmission in a broad sense in Europe for the years 1990-1995. On the basis of a theoretical model, it is argued that the existence of a bank lending channel implies that banks with liquid and less liquid balance sheets, and large and small banks respond differently to changes in the stance of monetary policy. In addition, the balance sheet channel is taken into account by examining loan demand in relation to bank size. The empirical results provide support for the existence of credit channels of monetary policy transmission in continental Europe. The bank lending channel is found to be particularly strong in Germany, Belgium and the Netherlands, while the balance sheet channel is relatively strong in again Germany and to a lesser extent also in Italy. On the one hand, banks in France and Italy seem to have faced liquidity constraints during the sample period. On the other, the empirical results show that in France and Italy a bank lending channel also exists when the stance of monetary policy is not measured by the change in the short-term interest rate but by a monetary conditions index, which also takes into account dollar exchange rate developments. In the United Kingdom, however, credit channels seem to be non-existent or are dominated by loan and deposit demand factors of bank customers.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Paper provided by Netherlands Central Bank, Research Department in its series WO Research Memoranda (discontinued) with number 543.

    as in new window
    Length:
    Date of creation: 1998
    Date of revision:
    Handle: RePEc:dnb:wormem:543

    Contact details of provider:
    Postal: Postbus 98, 1000 AB Amsterdam
    Web page: http://www.dnb.nl/en/
    More information through EDIRC

    Related research

    Keywords: panel data models; monetary policy; banks; EU member states;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Johann Burgstaller, 2010. "Bank Lending and Monetary Policy Transmission in Austria," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 230(2), pages 163-185.
    2. G.J. de Bondt, 1999. "Credit Channels and Consumption: European Evidence," DNB Staff Reports (discontinued) 39, Netherlands Central Bank.
    3. Robert Bichsel & Josef Perrez, 2005. "In Quest of the Bank Lending Channel: Evidence for Switzerland using Individual Bank Data," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(II), pages 165-190, June.
    4. Altunbas, Yener & Fazylov, Otabek & Molyneux, Philip, 2002. "Evidence on the bank lending channel in Europe," Journal of Banking & Finance, Elsevier, vol. 26(11), pages 2093-2110, November.
    5. Goddard, John & Molyneux, Philip & Wilson, John O.S. & Tavakoli, Manouche, 2007. "European banking: An overview," Journal of Banking & Finance, Elsevier, vol. 31(7), pages 1911-1935, July.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:dnb:wormem:543. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rob Vet).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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