Global Banking and the Balance Sheet Channel of Monetary Transmission
Sami Alpanda () and
Uluc Aysun ()
International Journal of Central Banking, 2012, vol. 8, issue 3, 141-175
The literature typically finds that the development of financial markets has decreased the ability of central banks to affect the real economy. This paper shows that this negative relationship does not hold between the balance sheet channel of monetary transmission and bank globalization-one aspect of financial development. The reason is that global banks are more sensitive to their borrowers’ leverage. By affecting this leverage, monetary policy has a larger impact on global banks’ lending and aggregate economic activity. We use bank-level Call Report data to find this disparity between more and less global banks.
JEL-codes: E44 E51 F31 F41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
Working Paper: Global banking and the balance sheet channel of monetary transmission (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2012:q:3:a:4
Access Statistics for this article
International Journal of Central Banking is currently edited by Loretta J. Mester
More articles in International Journal of Central Banking from International Journal of Central Banking
Bibliographic data for series maintained by Bank for International Settlements ().