IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v32y2025i13p1946-1950.html
   My bibliography  Save this article

U.S. monetary policy shocks and bank lending in Latin America: evidence of an international bank lending channel

Author

Listed:
  • Carlos Giraldo
  • Iader Giraldo
  • Jose Gomez-Gonzalez
  • Jorge Uribe

Abstract

We examine the impact of U.S. monetary policy shocks on bank lending in five major Latin American countries where large U.S. banks have limited presence. Our analysis covers annual balance sheet data from 2000 to 2021 for all banks in these nations, utilizing a recently developed measure of U.S. monetary policy shocks by Bu et al. Our findings reveal the existence of an international bank lending channel, with a one-percentage-point increase in the Fed funds rate resulting in an average 80.6 basis-point reduction in domestic bank loan growth in these countries. Liquidity and solvency emerge as crucial factors driving variations in lending behaviour among Latin American banks, with banks exhibiting stronger liquidity and solvency profiles experiencing higher loan supply growth rates.

Suggested Citation

  • Carlos Giraldo & Iader Giraldo & Jose Gomez-Gonzalez & Jorge Uribe, 2025. "U.S. monetary policy shocks and bank lending in Latin America: evidence of an international bank lending channel," Applied Economics Letters, Taylor & Francis Journals, vol. 32(13), pages 1946-1950, July.
    • Handle: RePEc:taf:apeclt:v:32:y:2025:i:13:p:1946-1950
    DOI: 10.1080/13504851.2024.2331672
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2024.2331672
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2024.2331672?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    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:taf:apeclt:v:32:y:2025:i:13:p:1946-1950. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.