Monetary easing and the lending concentration channel of monetary policy transmission

Adonis Antoniades

Journal of Banking & Finance, 2021, vol. 133, issue C

Abstract: I use loan-level data on US mortgage loan applications to identify the effect of lending concentration on the pass-through of the 2008 monetary easing to the volume of lending. Lenders eased credit conditions but less so in counties with higher lending concentration. Furthermore, within a county, the pass-through was lower for lenders with higher local market power. The channel is active also during the 2005 monetary tightening episode. It is distinct from the deposits channel of monetary policy transmission, and its influence is ubiquitous: it affects both new loans and refinances, depository and non-depository lenders, and market leaders and laggards.

Keywords: Monetary policy; Lending channel; Market concentration; Market power; Mortgages (search for similar items in EconPapers)
JEL-codes: E51 E52 E58 G01 G21 G23 (search for similar items in EconPapers)
Date: 2021
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:eee:jbfina:v:133:y:2021:i:c:s0378426621002533

DOI: 10.1016/j.jbankfin.2021.106301

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