Dampening the financial accelerator? direct lenders and monetary policy
Ryan Banerjee and
José-María Serena ()
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José-María Serena: Banco de España
No 2201, Working Papers from Banco de España
Abstract:
Direct lenders, non-bank credit intermediaries with low leverage, have become increas-ingly important players in corporate loan markets. In this paper we investigate the role they play in the monetary policy transmission mechanism, using syndicated loan data covering the 2000-2018 period. We show that direct lenders are more likely to join loan syndicates whenever monetary policy announcements trigger a contraction in borrowers’ net worth irrespective of the directional change in interest rates. Thus, our findings suggest that direct lenders dampen the financial accelerator channel of monetary policy.
Keywords: direct lending; monetary policy; financial accelerator; credit channel (search for similar items in EconPapers)
JEL-codes: F32 F34 G21 G32 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2021-12
New Economics Papers: this item is included in nep-mon
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Citations: View citations in EconPapers (1)
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Working Paper: Dampening the financial accelerator? Direct lenders and monetary policy (2021) 
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:2201
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