Financial Stability and Monetary Policy - The case of Brazil

Benjamin Tabak

Revista Brasileira de Economia - RBE, 2013, vol. 67, issue 4

Abstract: This paper seeks to examine the effects of monetary policy over banks’ loans growth and whether there is a bank lending channel operating in Brazil. Therefore, we employ a detailed high frequency panel data in which we include bank characteristics and ownership control. We contribute to the literature on bank lending channel by showing that during periods of loosening/tightening monetary policy, banks increase/decrease their loans. Additionally, our results illustrate that large, well-capitalized and liquid banks react differentially to the effects of monetary policy shocks. Finally, we show that the impact of monetary policy differs across state-owned, foreign and private domestic banks. These results are important for developing and conducting monetary policy.

Date: 2013
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Working Paper: Financial Stability and Monetary Policy - The Case of Brazil (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:epgrbe:v:67:y:2013:i:4:a:11849

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