Bank Lending Channel of Monetary Policy: Evidence for Colombia, Using a Firms� Panel

Jos� E. G�mez Gonz�lez and Paola Morales Acevedo
Authors registered in the RePEc Author Service: Paola Morales-Acevedo () and Jose Gomez-Gonzalez

No 5219, Borradores de Economia from Banco de la Republica

Abstract: In this paper we find empirical evidence of bank lending channel for Colombia, using a balanced panel data of about four thousand non-financial firms. We find that increases in the interest rate, proxiing for the monetary policy instrument, lead to a reduction in the proportion of bank loans, out of total debt, of the .rms. This bank lending channel amplifies the effect of the traditional interest rate channel, which leads to a reduction in total debt and spending when monetary policy tightens. Our result agrees with, and complements, those obtained by G�mez Gonz�lez and Grosz (2007), who provide evidence of the existence of a bank lending channel in Colombia using bank-specific financial variables.

Keywords: Monetary transmission; bank lending channel; Colombia (search for similar items in EconPapers)
JEL-codes: E5 E52 E59 G21 (search for similar items in EconPapers)
Pages: 9
Date: 2009-01-07
New Economics Papers: this item is included in nep-cba, nep-dev, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:col:000094:005219

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