Nonbanks, Banks, and Monetary Policy: U.S. Loan-Level Evidence since the 1990s

Bryce C. Turner, David Elliott, Ralf R. Meisenzahl and José-Luis Peydró
Authors registered in the RePEc Author Service: Jose-Luis Peydro

No 1129, Working Papers from Barcelona School of Economics

Abstract: 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.

Keywords: monetary policy; mortgages; shadow banks; nonbank lending; syndicated loans; consumer loans (search for similar items in EconPapers)
JEL-codes: E51 E52 G21 G23 G28 (search for similar items in EconPapers)
Date: 2019-11
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Nonbanks, banks, and monetary policy: U.S. loan-level evidence since the 1990s (2022)
Working Paper: Nonbanks, Banks, and Monetary Policy: U.S. Loan-Level Evidence since the 1990s (2020)
Working Paper: Nonbanks, Banks, and Monetary Policy: U.S. Loan-Level Evidence since the 1990s (2020)
Working Paper: Nonbanks, Banks, and Monetary Policy: U.S. Loan-Level Evidence since the 1990s (2019)
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