Bank lending, risk taking, and the transmission of monetary policy: new evidence for an emerging economy

Nidia Reyes (), Jose Gomez-Gonzalez and Jair Ojeda-Joya

Macroeconomics and Finance in Emerging Market Economies, 2015, vol. 8, issue 1-2, 67-80

Abstract: We study the existence of a monetary policy transmission mechanism through banks in Colombia, using monthly banks' balance sheet data for the period 1996:4 to 2012:12. The results are consistent with the basic postulates of the bank lending channel (and the risk-taking channel) literature. The impact of short-term interest rates on the growth rate of loans is negative, indicating that increases in these rates lead to reductions in the growth rate of loans. This impact is stronger for consumer loans than for commercial loans. We find important heterogeneity in the monetary policy transmission across banks depending on bank-specific characteristics.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/17520843.2014.930059 (text/html)
Access to full text is restricted to subscribers.

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:taf:macfem:v:8:y:2015:i:1-2:p:67-80

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/REME20

DOI: 10.1080/17520843.2014.930059

Access Statistics for this article

Macroeconomics and Finance in Emerging Market Economies is currently edited by Subrata Sarkar and Ashima Goyal

More articles in Macroeconomics and Finance in Emerging Market Economies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().