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Financial systems and the role of banks in monetary policy transmission in the euro area

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  • Sevestre, Patrick
  • Martinez-Pages, Jorge
  • Gambacorta, Leonardo
  • Ehrmann, Michael
  • Worms, Andreas

Abstract

This paper offers a comprehensive comparison of the structure of banking and financial markets in the euro area. Based on this, several hypotheses about the role of banks in monetary policy transmission are developed. Many of the predictions that have been proposed for the U.S. are deemed unlikely to apply in Europe. Testing these hypotheses we find that monetary policy does alter bank loan supply, with the effects most dependent on the liquidity of individual banks. Unlike in the US, the size of a bank does generally not explain its lending reaction. We also show that the standard publicly available database, BankScope, obscures the heterogeneity across banks. Indeed, for several types of questions BankScope data suggest very different answers than more complete data that reside at national central banks. -- Dieses Papier bietet einen umfassenden Vergleich zwischen den Strukturen der Banksysteme und Finanzmärkte im Eurogebiet. Basierend hierauf werden einige Hypothesen über die Rolle von Banken in der geldpolitischen Transmission aufgestellt. Viele der für die USA diesbezüglich vermuteten Gegebenheiten gelten wahrscheinlich nicht für Europa. Die ökonometrische Analyse ergibt, dass die Geldpolitik das Bankkreditangebot beeinflußt, wobei die Stärke dieses Effekts über Banken in Abhängigkeit ihres Liquiditätsgrads variiert. Im Gegensatz zu den USA ist im Allgemeinen die Größe einer Bank kein direkter Einflussfaktor für ihre Reaktion mit der Kreditvergabe auf geldpolitische Maßnahmen. Wir zeigen darüber hinaus, dass die in vergleichbaren Studien üblicherweise verwendete, öffentlich verfügbare Datenbasis BankScope ein verzerrtes Bild der zwischen Banken bestehenden Heterogenität wieder gibt. Bei einigen Fragestellungen führt daher die BankScope Datenbasis verglichen mit den vollständigeren Datensätzen der nationalen Zentralbanken zu unterschiedlichen Ergebnissen.

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Bibliographic Info

Paper provided by Deutsche Bundesbank, Research Centre in its series Discussion Paper Series 1: Economic Studies with number 2001,18.

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Date of creation: 2001
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Handle: RePEc:zbw:bubdp1:4163

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Keywords: monetary policy transmission; financial structure; bank lending;

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References

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  25. Loupias, Claire & Savignac, Frédérique & Sevestre, Patrick, 2001. "Monetary policy and bank lending in France: are there asymmetries?," Working Paper Series 0101, European Central Bank.
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