Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152533
Authors: 
Hernando, Ignacio
Martinéz Pagés, Jorge
Year of Publication: 
2001
Series/Report no.: 
ECB Working Paper 99
Abstract: 
This paper uses panel data on banks, for the period 1991-98, to test the existence of a bank-lending channel in the Spanish economy. In order to distinguish between loan demand and supply movements, several exercises are performed. First, we analyse the differential responses, to monetary policy changes, of bank lending by banks with different size, liquidity and capitalisation. Second, we analyse the response to an exogenous deposit-reducing shock a tax-induced shift from deposits to mutual fund shares). As this involves a pure loan supply shock, it best solves the above-mentioned identification problem. Our results are mostly against the existence of a bank-lending channel in the period under analysis. This result appears to be related to the important role of many small banks as collectors of savings, meaning they have a large volume of resources available for lending
Subjects: 
bank funding
bank lending
monetary transmission mechanism
JEL: 
C23
E44
E52
G21
Document Type: 
Working Paper

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