EconPapers    
Economics at your fingertips  
 

A Global Lending Channel Unplugged? Does U.S. Monetary Policy Affect Cross-border and Affiliate Lending by Global U.S. Banks?

Judit Temesvary (), Steven Ongena () and Ann Owen ()

No 2018-008, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (US)

Abstract: We examine how U.S. monetary policy affects the international activities of U.S. Banks. We access a rarely studied U.S. bank-level regulatory dataset to assess at a quarterly frequency how changes in the U.S. Federal funds rate (before the crisis) and quantitative easing (after the onset of the crisis) affects changes in cross-border claims by U.S. banks across countries, maturities and sectors, and also affects changes in claims by their foreign affiliates. We find robust evidence consistent with the existence of a potent global bank lending channel. In response to changes in U.S. monetary conditions, U.S. banks strongly adjust their cross-border claims in both the pre and post-crisis period. However, we also find that U.S. bank affiliate claims respond mainly to host country monetary conditions.

Keywords: Bank lending channel; Cross-country analysis; Global banking; Monetary transmission (search for similar items in EconPapers)
JEL-codes: E44 E52 F42 G15 G21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac and nep-mon
Date: 2018-02-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25) Track citations by RSS feed

Downloads: (external link)
https://www.federalreserve.gov/econres/feds/files/2018008pap.pdf (application/pdf)

Related works:
Journal Article: A global lending channel unplugged? Does U.S. monetary policy affect cross-border and affiliate lending by global U.S. banks? (2018) Downloads
Working Paper: A Global Lending Channel Unplugged? Does U.S. Monetary Policy Affect Cross-border and Affiliate Lending by Global U.S. Banks? (2015) Downloads
Working Paper: A global lending channel unplugged? Does U.S. monetary policy affect cross-border and affiliate lending by global U.S. banks? (2015) Downloads
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:fip:fedgfe:2018-08

Ordering information: This working paper can be ordered from
http://www.federalre ... /feds/fedsorder.html

DOI: 10.17016/FEDS.2018.008

Access Statistics for this paper

More papers in Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (US) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ().

 
Page updated 2019-11-18
Handle: RePEc:fip:fedgfe:2018-08