Monetary Transmission Through Community and Noncommunity Bank Lending

Giorgi Nikolaishvili ()

No 123, Working Papers from Wake Forest University, Economics Department

Abstract: This paper examines the dynamic macroeconomic effects of monetary transmission through community and noncommunity bank lending in the United States. I find that while both types of banks amplify the impact of monetary policy shocks on output, community banks exhibit a more delayed and persistent amplificatory influence than their noncommunity counterparts. These results suggest that continued decline in community banks' market share may dampen the efficacy of monetary policy over longer horizons. Moreover, the adverse real effects of monetary tightening are likely to be longer-lasting for small business borrowers who depend on community banks for funding.

Keywords: Community banks; FAVAR; lending channel; monetary policy; relationship lending (search for similar items in EconPapers)
JEL-codes: E51 E52 G21 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2025-01-29
New Economics Papers: this item is included in nep-cba, nep-fdg and nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5113545 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:wfuewp:0123

Access Statistics for this paper

More papers in Working Papers from Wake Forest University, Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Don Shegog ().