Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73592
Authors: 
Burgstaller, Johann
Scharler, Johann
Year of Publication: 
2009
Series/Report no.: 
Working Paper, Department of Economics, Johannes Kepler University of Linz 0902
Abstract: 
This paper examines the pass-through from the market interest to the rate charged on bank loans using aggregate data for the U.K. Thereby, we explicitly disentangle credit supply and demand and allow the interest rate charged on loans to depend on the volume of loans. We find that, although banks adjust the lending rate to some extent, they largely accommodate shifts in demand. Overall, our results are consistent with the idea that banks provide insurance against liquidity shocks.
Subjects: 
Interest Rate Pass-Through
Relationship Banking
JEL: 
E43
G21
Document Type: 
Working Paper

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