Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/189889
Authors: 
Ongena, Steven
Schindele, Ibolya
Vonnák, Dzsamila
Year of Publication: 
2017
Series/Report no.: 
MNB Working Papers 2017/6
Abstract: 
We study the impact of monetary policy on the supply of bank credit when bank lending is also denominated in foreign currencies. Accessing a comprehensive supervisory dataset from Hungary, we find that the supply of bank credit in a foreign currency is less sensitive to changes in domestic monetary conditions than the equivalent supply in the domestic currency. Changes in foreign monetary conditions similarly affect bank lending more in the foreign than in the domestic currency. Hence when banks lend in multiple currencies the domestic bank lending channel is weakened and international bank lending channels become operational.
Subjects: 
Bank balance-sheet channel
monetary policy
foreign currency lending
JEL: 
E51
F3
G21
Document Type: 
Working Paper

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