Paper #1706

Título:

Credit supply and monetary policy: Identifying the bank balance-sheet channel with loan applications

Autores:

Gabriel Jimenez, Steven Ongena, José-Luis Peydró y Jesús Saurina

Fecha:

Septiembre 2010

Resumen:

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.

Códigos JEL:

E32, E44, E5, G21, G28

Área de investigación:

Finanzas y Contabilidad

Publicado en:

American Economic Review, 102 (5), 2012, 2301-2326

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