Bank competition and monetary policy transmission through the bank lending channel: Evidence from ASEAN

2016 ◽  
Vol 44 ◽  
pp. 19-39 ◽  
Author(s):  
Habib Hussain Khan ◽  
Rubi Binti Ahmad ◽  
Chan Sok Gee
Keyword(s):  
Monetary Policy ◽  
Bank Lending ◽  
Bank Competition ◽  
Monetary Policy Transmission ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Policy Transmission

scholarly journals The Effect of Monetary Policy on Bank Wholesale Funding

2020 ◽  
Author(s):  
Dong Beom Choi ◽  
Hyun-Soo Choi
Keyword(s):  
Monetary Policy ◽  
Banking Sector ◽  
Financial Frictions ◽  
Bank Lending ◽  
Monetary Policy Transmission ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Policy Transmission ◽  
Effect Of Monetary Policy

We study how monetary policy affects the funding composition of the banking sector. When monetary tightening reduces the supply of retail deposits, banks attempt to substitute wholesale funding for deposit outflows to smooth their lending. Because of financial frictions, banks have varying degrees of access to wholesale funding. Therefore, large banks, or those with greater reliance on wholesale funding, increase their wholesale funding more. Consequently, monetary tightening increases both the reliance on and the concentration of wholesale funding within the banking sector. Our findings also suggest that liquidity requirements could bolster monetary policy transmission through the bank lending channel. This paper was accepted by Tyler Shumway, finance.

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