The impact of interest rate policy on credit union lending during a crisis period

Lan Thi Mai Nguyen, Hiep Ngoc Luu and Thao Thi Phuong Nguyen

Finance Research Letters, 2022, vol. 48, issue C

Abstract: We exploit the variation in the exposure to the Covid-19 pandemic of US states as a quasi-natural experiment to examine the impact of interest rate policy on credit union lending. We find that the interest rate cut can only enhance credit union lending in states that are less affected by the Covid-19 pandemic whilst hampering credit union lending in more affected states. This result is consistent across a number of robustness tests.

Keywords: Interest rate cut; Zero policy rate; Credit union lending; Covid-19 pandemic (search for similar items in EconPapers)
JEL-codes: E02 E52 G21 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322002471

DOI: 10.1016/j.frl.2022.103005

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