Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/232080 
Year of Publication: 
2012
Citation: 
[Journal:] American Economic Review [ISSN:] 1944-7981 [Volume:] 102 [Issue:] 5 [Publisher:] American Economic Association [Place:] Nashville [Year:] 2012 [Pages:] 2301-2326
Publisher: 
American Economic Association, Nashville
Abstract: 
We analyze the impact of monetary policy on the supply of bank credit. Monetary policy affects both loan supply and demand, thus making identification a steep challenge. We therefore analyze a novel, supervisory dataset with loan applications from Spain. Accounting for time-varying firm heterogeneity in loan demand, we find that tighter monetary and worse economic conditions substantially reduce loan granting, especially from banks with lower capital or liquidity ratios; responding to applications for the same loan, weak banks are less likely to grant the loan. Finally, firms cannot offset the resultant credit restriction by applying to other banks.
JEL: 
E32
E44
E5
G21
G28
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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