What Do a Million Banks Have to Say About the Transmission of Monetary Policy? / Anil K. Kashyap, Jeremy C. Stein.

Format:

Book

Author/Creator:

Kashyap, Anil K.

Contributor:

National Bureau of Economic Research.

Stein, Jeremy C.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6056.

NBER working paper series no. w6056

Language:

English

Subjects (All):

Bank loans.

Econometric models.

Monetary policy--Econometric models.

Monetary policy.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Cambridge : National Bureau of Economic Research, 1997.

Summary:

In an effort to shed new light on the monetary transmission mechanism, we create a panel data set that includes quarterly observations of every insured commercial bank in the United States over the period 1976-1993. Our key cross-sectional finding is that the impact of monetary policy on lending behavior is significantly more pronounced for banks with less liquid balance sheets -- i.e., banks with lower ratios of cash and securities to assets. Moreover, this result is entirely attributable to the smaller banks in our sample, those in the bottom 95% of the size distribution. Among other things, our findings provide strong support for the existence of a lending channel

Notes:

Print version record

June 1997.