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The bank-lending channel empirically revisited

Listed author(s):
  • Halvorsen, Jørn I.
  • Jacobsen, Dag Henning
Registered author(s):

    This study examines the role of bank equity and bank lending in the monetary transmission mechanism in Norway from January 1993 to August 2008. We apply linear and nonlinear vector-auto-regressive models (VARs) estimated using aggregate monthly data. The results provide support for a “risk-taking channel” in the form of a recasted bank-lending channel running through market-based wholesale funding, in which the impact of monetary policy depends on banks’ financial strength. When banks are weakly capitalized, results based on a nonlinear VAR show a larger monetary-policy effect on real activity.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1572308916301255
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    Article provided by Elsevier in its journal Journal of Financial Stability.

    Volume (Year): 27 (2016)
    Issue (Month): C ()
    Pages: 95-105

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    Handle: RePEc:eee:finsta:v:27:y:2016:i:c:p:95-105
    DOI: 10.1016/j.jfs.2016.10.004
    Contact details of provider: Web page: http://www.elsevier.com/locate/jfstabil

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