Business Owner Wealth and the Credit Channel of Monetary Policy

Manthos D. Delis, Annalisa Ferrando, Klaas Mulier and Steven Ongena
Additional contact information
Manthos D. Delis: Audencia Business School
Annalisa Ferrando: European Central Bank (ECB)
Steven Ongena: University of Zurich - Department Finance; Swiss Finance Institute; KU Leuven; NTNU Business School; Centre for Economic Policy Research (CEPR)

No 26-32, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: Using data on small business owners' private wealth, firm loan applications, and credit scores, we show that monetary policy's impact on credit access depends heavily on owner wealth. Controlling for firm quality, expansionary policy significantly boosts loan approvals for low-wealth owners, but not their high-wealth counterparts. Because securing a loan enables owners to build future wealth, this credit channel carries clear distributional consequences. Survey data from 19 euro area countries corroborate these findings, revealing that the effect transmits primarily through weakly capitalized and less liquid banks.

Keywords: Monetary policy; corporate credit; owners' private wealth; inequality (search for similar items in EconPapers)
JEL-codes: D63 E51 E52 (search for similar items in EconPapers)
Pages: 84 pages
Date: 2026-04
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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2632

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