International spillovers from US monetary policy: Evidence from Asian bank-level data

Seungyoon Lee and Christopher Bowdler

Journal of International Money and Finance, 2022, vol. 127, issue C

Abstract: We investigate spillovers from US monetary policy to bank lending in Asia. When Asian banks use funding denominated in US dollars and other currencies, a tightening of US monetary policy will contract bank loan supply via funding volumes/costs. Panel regressions demonstrate such effects on bank lending volumes and prices in Asia, holding constant local economic conditions. Supplementary results are consistent with transmission channels via funding conditions. Our results extend work on the impact of US monetary policy on international inter-bank funding flows and are consistent with several implications from findings in that literature.

Keywords: Spillover of US monetary policy; Bank lending channel; Foreign debt; Panel data (search for similar items in EconPapers)
JEL-codes: E43 E52 F42 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261560622000808
Full text for ScienceDirect subscribers only

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:eee:jimfin:v:127:y:2022:i:c:s0261560622000808

DOI: 10.1016/j.jimonfin.2022.102677

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().