The currency dimension of the bank lending channel in international monetary transmission

• 成果类型: Article
• 署名作者: Takats, Elod; Temesvary, Judit
• 署名单位: Bank for International Settlements (BIS); Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2020.103309
• 发表日期: 2020
• 关键词: Cross-border bank lending; Bank lending channel; Monetary transmission; Currency denomination

摘要

We investigate how the use of a currency transmits monetary policy changes in the global banking system. We use a newly available rarely accessed dataset on the bilateral cross-border lending flows of 27 BIS-reporting lending banking systems to borrowers in 51 countries, broken down by currency denomination (USD, EUR and JPY). We have threemain findings. First, we identify a currency dimension of the international bank lending channel: monetary changes in a currency significantly affect cross-border lending flows in that currency, even when neither the lending banking systemnor the target country uses that currency as their own. Second, this transmission works mainly through lending to non-banks. Third, the currency dimension of the bank lending channel works similarly across the three currencies, suggesting that the USD may not be unique in this respect. Published by Elsevier B.V.