The effects of local banking market structure on the banking-lending channel of monetary policy
Abstract: We study the relationship between banking competition and the transmission of monetary policy through the bank lending channel. Using business small loan origination data provided from the Community Reinvestment Act from 1996-2002 in our analysis, we are able to reaffirm the existence of the bank lending channel of monetary transmission. Moreover, we find that the impact of monetary policy on loan originations is weaker in more concentrated markets.
File(s): File format is text/html http://www.federalreserve.gov/pubs/feds/2005/200516/200516abs.html
File(s): File format is application/pdf http://www.federalreserve.gov/pubs/feds/2005/200516/200516pap.pdf
Part of Series: Finance and Economics Discussion Series
Publication Date: 2005