International monetary policy spillovers through the bank funding channel

Peter Lindner, Axel Loeffler, Esther Segalla, Guzel Valitova and Ursula Vogel

Journal of International Money and Finance, 2019, vol. 90, issue C, 161-174

Abstract: In this paper, we examine the international transmission of monetary policies of major advanced economies (US, UK, euro area) through banks in Austria and Germany. In particular, we compare the role of banks’ funding structure, broken down by country of origin as well as by currency denomination, in the international transmission of monetary policy changes to bank lending. We find weak evidence for inward spillovers through a bank funding channel. The more a bank is funded in US dollars, the more its domestic real sector lending is affected by monetary policy changes in the US. This effect is more pronounced in Germany than in Austria. We do not find evidence for outward spillovers of euro area monetary policy.

Keywords: Monetary policy spillover; Global banks; Bank funding channel (search for similar items in EconPapers)
JEL-codes: E52 F33 G21 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (17)

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Working Paper: International monetary policy spillovers through the bank funding channel (2018)
Working Paper: International monetary policy spillovers through the bank funding channel (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:90:y:2019:i:c:p:161-174

DOI: 10.1016/j.jimonfin.2018.08.012

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