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The effects of local banking market structure on the banking-lending channel of monetary policy

  • Robert M. Adams
  • Dean F. Amel
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    We study the relationship between banking competition and the transmission of monetary policy through the bank lending channel. Using business small loan origination data provided from the Community Reinvestment Act from 1996-2002 in our analysis, we are able to reaffirm the existence of the bank lending channel of monetary transmission. Moreover, we find that the impact of monetary policy on loan originations is weaker in more concentrated markets.

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    File URL: http://www.federalreserve.gov/pubs/feds/2005/200516/200516pap.pdf
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    Paper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2005-16.

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    Date of creation: 2005
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    Handle: RePEc:fip:fedgfe:2005-16
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    7. Anil Kashyap & Jeremy C. Stein, 1993. "Monetary Policy and Bank Lending," NBER Working Papers 4317, National Bureau of Economic Research, Inc.
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