Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102700
Authors: 
Ongena, Steven
Schindele, Ibolya
Vonnák, Dzsamila
Year of Publication: 
2014
Series/Report no.: 
CFS Working Paper Series 474
Abstract: 
We analyze the differential impact of domestic and foreign monetary policy on the local supply of bank credit in domestic and foreign currencies. We analyze a novel, supervisory dataset from Hungary that records all bank lending to firms including its currency denomination. Accounting for time-varying firm-specific heterogeneity in loan demand, we find that a lower domestic interest rate expands the supply of credit in the domestic but not in the foreign currency. A lower foreign interest rate on the other hand expands lending by lowly versus highly capitalized banks relatively more in the foreign than in the domestic currency.
Subjects: 
Bank balance-sheet channel
monetary policy
foreign currency lending
JEL: 
E51
F3
G21
Document Type: 
Working Paper

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