A CENTRAL BANK DIGITAL CURRENCY IN A HETEROGENEOUS MONETARY UNION: Managing the Effects on the Bank Lending Channel

2022 ◽  
pp. 103392
Author(s):  
Paolo Fegatelli
Keyword(s):  
Central Bank ◽  
Monetary Union ◽  
Bank Lending ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Digital Currency

Inside the Bank Box

2019 ◽  
pp. 368-405
Author(s):  
Leonardo Gambacorta ◽  
Paul Mizen
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
Adjustment Costs ◽  
Bank Lending ◽  
Bank Capital ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Pass Through ◽  
The Interest Rate

Central bank policy operates first through financial markets and then through banks as they adjust their interest rates. This chapter discusses the transmission of policy in this first step of the monetary transmission mechanism, known as interest-rate pass-through. Historically, the focus of attention has been the interest-rate channel. We show the origins of this channel via a microfounded model of interest-rate setting by deposit-taking institutions that are Cournot oligopolists facing adjustment costs. We then examine other channels such as the bank lending channel and the bank capital channel and the role of central bank communications, signaling, and forward guidance over future interest rates. Each is shown to influence the setting of current short-term interest rates. The chapter closes with some issues for the future of pass-through in the transmission process.

scholarly journals The bank lending channel in Turkey: has it changed after the low-inflation regime?

2012 ◽  
Vol 19 (13) ◽  
pp. 1237-1242 ◽  
Author(s):  
Abdurrahman Nazif Çatik ◽  
Mehmet Karaçuka
Keyword(s):  
Bank Lending ◽  
Bank Lending Channel ◽  
Lending Channel
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