The Effect of Unconventional Monetary Policy on Cross-Border Bank Loans: Evidence from an Emerging Market

Koray Alper, Fatih Altunok, Tanju Çapacıoğlu and Steven Ongena

European Economic Review, 2020, vol. 127, issue C

Abstract: We analyze the impact of quantitative easing by the Federal Reserve, European Central Bank and Bank of England on cross-border credit flows. Relying on comprehensive loan-level data, we find that Fed QE strongly boosts cross-border credit granted to Turkish banks by banks located in the US, Euro Area and UK, while ECB and BoE QEs work only moderately through banks in the EA and UK, respectively. In general QE works at short maturities across bank locations and loan currencies, more strongly for weaker lenders and borrowers, and may have resulted in maturity mismatches in Turkish banks searching for yield. (99 words)

Keywords: Bank lending channel; Bank borrowing channel; Monetary transmission; Quantitative easing (QE); Cross-border bank loans; Micro-level data; Capital requirements; Financial de-globalization (search for similar items in EconPapers)
JEL-codes: E44 E52 F42 G15 G21 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Working Paper: The Effect of Unconventional Monetary Policy on Cross‐Border Bank Loans: Evidence from an Emerging Market (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:127:y:2020:i:c:s0014292120300581

DOI: 10.1016/j.euroecorev.2020.103426

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