Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271047 
Year of Publication: 
2023
Series/Report no.: 
BOFIT Discussion Papers No. 2/2023
Publisher: 
Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT), Helsinki
Abstract: 
This paper studies monetary policy transmission through BigTech and traditional banks. By comparing business loans made by a BigTech bank with those made by traditional banks, it finds that BigTech credit amplifies monetary policy transmission mainly through the extensive margin. Specifically, the BigTech bank is more likely to grant credit to new borrowers compared with conventional banks in response to expansionary monetary policy. The BigTech bank's advantages in information, monitoring, and risk management are the potential mechanisms. In addition, monetary policy has a stronger impact on the real economy through BigTech lending.
Subjects: 
Financial Technology
Bank Lending
Monetary Policy Transmission
JEL: 
E52
G21
G23
ISBN: 
978-952-323-425-3
Document Type: 
Working Paper

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