Paper #1679

Título:

Nonbanks, banks, and monetary policy: U.S. loan-level evidence since the 1990s

Autores:

David Elliott, Ralf R. Meisenzahl, José-Luis Peydró y B.C. Turner

Fecha:

Marzo 2019

Resumen:

We show that nonbanks (funds, shadow banks, fintech) affect the transmission of monetary policy to output, prices and the distribution of risk via credit supply. For identification, we exploit exhaustive US loan-level data since the 1990s, borrowerlender relationships and Gertler-Karadi monetary policy shocks. Higher policy rates shift credit supply from banks to nonbanks, thereby largely neutralizing associated consumption effects (via consumer loans), while just attenuating firm investment and house price spillovers (via corporate loans and mortgages). Moreover, dfferent from the risk-taking channel, higher policy rates increase risk-taking, as less-regulated, fragile nonbanks |in all credit markets| expand supply to riskier borrowers.

Palabras clave:

Negative rates, non-standard monetary policy, reach-for-yield, securities, banks.

Códigos JEL:

E51, E52, G21, G23, G28

Área de investigación:

Macroeconomía y Economía Internacional

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