European Integration and the Credit Channel Transmission of Monetary Policy

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European Integration and the Credit Channel Transmission of Monetary Policy

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Cândida Ferreira

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Candida Ferreira

Abstract

Using pooled panel OLS estimations and dynamic Arellano-Bond GMM estimations with quarterly data for 26 EU countries for the period from Q1 1999 to Q3 2006 this paper confirms the high degree of integration between the EU financial systems, as well as the importance of bank performance conditions to the credit-lending channel of monetary policy in the EU. Furthermore, it demonstrates not only the quite high degree of openness of the financial markets but also their indebtedness and the dependence of the EU banking institutions on the financial resources of other countries.

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Paper provided by Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon. in its series Working Papers with number 2009/07.

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Date of creation: Jan 2009
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Handle: RePEc:ise:isegwp:wp72009

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Postal: Department of Economics, School of Economics and Management (ISEG), Technical University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
Web page: http://www.iseg.utl.pt/departamentos/economia/

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Find related papers by JEL classification:
E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
G2 - Financial Economics - - Financial Institutions and Services

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-02-22 (All new papers)
NEP-CBA-2009-02-22 (Central Banking)
NEP-MAC-2009-02-22 (Macroeconomics)
NEP-MON-2009-02-22 (Monetary Economics)

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