Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/176057 
Year of Publication: 
2010
Series/Report no.: 
Texto para discussão No. 574
Publisher: 
Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia, Rio de Janeiro
Abstract: 
Using the different response timings of credit demand and supply, we isolate supply shifts after monetary policy shocks. We show that the bank lending channel exists in Brazil: after an increase (decrease) in the basic interest rate (Selic), banks reduce (increase) the quantity of new loans and raise (lower) interest rates. However, contrary to the empirical literature for the US, we find evidence that large banks react more than smaller ones to monetary policy shocks. Results may have important implications for monetary policy transmission in light of the recent wave of concentration in the Brazilian banking industry.
Subjects: 
monetary policy transmission
credit markets
bank lending channel. JEL Code: E52
E58
JEL: 
E52
E58
Document Type: 
Working Paper

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