 Bank market power and monetary policy transmission: Evidence from loan-level dataNadezhda Ivanova, Svetlana Popova and Konstantin Styrin Emerging Markets Review, 2025, vol. 66, issue C Abstract: This paper asks the following questions. How does bank' market power reshape the transmission of monetary policy to bank lending? How does it affect loan characteristics such as the loan volume and maturity, lending interest rates, risk, and the extensive margin of lending? Is there a trade-off between financial stability and the strength of monetary transmission? We find that, for credit institutions with greater market power, monetary policy has a muted effect on fixed and floating lending interest rates, loan maturities and the extensive margin of lending at floating rates, whereas its influence on the loan volume and the extensive margin for fixed-rate loans, and risk-taking is neutral. Our current findings implying no trade-off between the strength of monetary policy transmission and financial stability are indecisive and subject to further investigation. Keywords: monetary policy transmission; market concentration (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:66:y:2025:i:c:s1566014125000299 DOI: 10.1016/j.ememar.2025.101280 Access Statistics for this article Emerging Markets Review is currently edited by Jonathan A. Batten More articles in Emerging Markets Review from Elsevier |
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