Financial Institutions’ Business Models and the Global Transmission of Monetary Policy
Isabel Argimon (),
Patty Duijm (),
Jon Frost (),
Jakob de Haan (),
Leo de Haan () and
No 1228, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)
Global financial institutions play an important role in channeling funds across countries and, therefore, transmitting monetary policy from one country to another. In this paper, we study whether such international transmission depends on financial institutions' business models. In particular, we use Dutch, Spanish, and U.S. confidential supervisory data to test whether the transmission operates differently through banks, insurance companies, and pension funds. We find marked heterogeneity in the transmission of monetary policy across the three types of institutions, across the three banking systems, and across banks within each banking system. While insurance companies and pension funds do not transmit home-country monetary policy internationally, banks do, with the direction and strength of the transmission determined by their business models and balance sheet characteristics.
Keywords: Monetary policy transmission; Global financial institutions; Bank lending channel; Portfolio channel; Business models (search for similar items in EconPapers)
JEL-codes: E5 F3 F4 G2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-eec, nep-ias, nep-knm, nep-mac, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Journal Article: Financial institutions’ business models and the global transmission of monetary policy (2019)
Working Paper: Financial institutions' business models and the global transmission of monetary policy (2018)
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:fip:fedgif:1228
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ().