The role of Uncertainty in the Transmission of Monetary Policy Effects on Bank Lending

Neslihan Ozkan; C. Baum; M. Caglayan

doi:10.1111/j.1467-9957.2011.02274.x

The role of Uncertainty in the Transmission of Monetary Policy Effects on Bank Lending

Neslihan Ozkan, C. Baum, M. Caglayan

School of Accounting and Finance - Business School

Research output: Contribution to journal › Article (Academic Journal) › peer-review

13 Citations (Scopus)

311 Downloads (Pure)

Abstract

In this paper we re-examine commercial banks' lending behavior taking into account changes in the stance of monetary policy in conjunction with changes in financial sector uncertainty. Our empirical findings, gathered from a very large data set covering all banks in the USA between 1986 and 2000, cast substantial doubt on the presence of a bank lending channel for the USA. We also show that financial uncertainty has an important and significant role in the monetary policy transmission mechanism which varies considerably across bank categories and the strength of banks' balance sheets.

Original language	English
Pages (from-to)	202-225
Number of pages	24
Journal	The Manchester School
Volume	81
Issue number	2
Early online date	26 Feb 2012
DOIs	https://doi.org/10.1111/j.1467-9957.2011.02274.x
Publication status	Published - 14 Feb 2013

Bibliographical note

E-published date: 26/02/12
Issue published date: 14/02/13

Keywords

Bank lending
Uncertainty

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10.1111/j.1467-9957.2011.02274.x

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This is the author accepted manuscript (AAM). The final published version (version of record) is available online via Wiley at http://onlinelibrary.wiley.com/doi/10.1111/j.1467-9957.2011.02274.x/abstract. Please refer to any applicable terms of use of the publisher.
Accepted author manuscript, 203 KBLicence: CC BY-NC

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abstract = "In this paper we re-examine commercial banks' lending behavior taking into account changes in the stance of monetary policy in conjunction with changes in financial sector uncertainty. Our empirical findings, gathered from a very large data set covering all banks in the USA between 1986 and 2000, cast substantial doubt on the presence of a bank lending channel for the USA. We also show that financial uncertainty has an important and significant role in the monetary policy transmission mechanism which varies considerably across bank categories and the strength of banks' balance sheets.",

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AU - Baum, C.

AU - Caglayan, M.

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PY - 2013/2/14

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N2 - In this paper we re-examine commercial banks' lending behavior taking into account changes in the stance of monetary policy in conjunction with changes in financial sector uncertainty. Our empirical findings, gathered from a very large data set covering all banks in the USA between 1986 and 2000, cast substantial doubt on the presence of a bank lending channel for the USA. We also show that financial uncertainty has an important and significant role in the monetary policy transmission mechanism which varies considerably across bank categories and the strength of banks' balance sheets.

AB - In this paper we re-examine commercial banks' lending behavior taking into account changes in the stance of monetary policy in conjunction with changes in financial sector uncertainty. Our empirical findings, gathered from a very large data set covering all banks in the USA between 1986 and 2000, cast substantial doubt on the presence of a bank lending channel for the USA. We also show that financial uncertainty has an important and significant role in the monetary policy transmission mechanism which varies considerably across bank categories and the strength of banks' balance sheets.

KW - Bank lending

KW - Uncertainty

UR - http://fmwww.bc.edu/ec-p/wp561.pdf

U2 - 10.1111/j.1467-9957.2011.02274.x

DO - 10.1111/j.1467-9957.2011.02274.x

M3 - Article (Academic Journal)

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EP - 225

JO - The Manchester School

JF - The Manchester School

IS - 2

ER -

The role of Uncertainty in the Transmission of Monetary Policy Effects on Bank Lending

Abstract

Bibliographical note

Keywords

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