Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208250
Authors: 
Schmidt, Julia
Caccavaio, Marianna
Carpinelli, Luisa
Marinelli, Giuseppe
Year of Publication: 
2018
Series/Report no.: 
ECB Working Paper 2216
Abstract: 
In this paper we provide empirical evidence on the impact of US and UK monetary policy changes on credit supply of banks operating in Italy and France over the period 2000-2015, exploring the existence of an international bank lending channel based on the reliance on funding sources located in these two countries or denominated in their currency. We find that US monetary policy tightening leads to a reduction of lending to the domestic economy in both France and Italy, and this is mainly driven by banks that relied more intensely on USD funding markets. Conversely, we find that both French and Italian banks are isolated from UK monetary policy shocks, as most of their UK funding is denominated in Euro, despite being larger than funding from the US.
Subjects: 
bank lending channel
foreign funding
global banks
JEL: 
E51
F30
F42
G20
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3321-6
Document Type: 
Working Paper

Files in This Item:
File
Size
602.05 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.