Impact of Quantitative Easing on Bank Lending to Different Industries or Sectors

Qing-yuan Sui

No HIAS-E-144, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University

Abstract: We empirically investigate the impact of the Bank of Japan’s (BOJ) monetary policy on the lending behaviors of regional banks during the period of quantitative easing (QE). We focus particularly on the credit supply from banks to different industries or sectors, with an emphasis on manufacturing and real estate-related industries. Our results indicate that the BOJ’s QE policy promoted bank lending to the estate-related industries or sectors but not to the manufacturing industry. Our findings align with recent studies on the limitations of overall credit supply in influencing the business cycle and economic growth. Furthermore, Our results suggest that the BOJ has limited ability to halt the recession through lending channels under the QE policy.

Keywords: quantitative easing; bank lending; regional banks; excess reserve; dynamic panel model (search for similar items in EconPapers)
JEL-codes: E44 E52 E58 G21 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2025-08-24
New Economics Papers: this item is included in nep-cba, nep-fdg, nep-mon and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hiasdp:hias-e-144

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