Quantitative Easing and Bank Lending: Evidence from Japan

CFA Digest ◽  
2016 ◽  
Vol 46 (3) ◽  
Author(s):  
Marc L. Ross
Keyword(s):  
Bank Lending ◽  
Quantitative Easing

Quantitative Easing, Bank Lending, and Competition

2021 ◽  
Author(s):  
Andrea Orame ◽  
Rodney Ramcharan ◽  
Roberto Robatto
Keyword(s):  
Bank Lending ◽  
Quantitative Easing

scholarly journals Transmission mechanisms in Japan’s quantitative easing policy (2001–2006)

2017 ◽  
Vol 6 (2) ◽  
pp. 35 ◽  
Author(s):  
Hiroyuki Ijiri
Keyword(s):  
Bank Lending ◽  
Var Model ◽  
Quantitative Easing ◽  
Time Varying ◽  
Transmission Channel ◽  
Bank Lending Channel ◽  
Monthly Data ◽  
Lending Channel ◽  
Transmission Mechanisms ◽  
Time Varying Parameter

This study investigates exchange rates and bank lending as the transmission channels for Japan’s Quantitative Easing Policy (QEP) during 2001–2006. Using a Time Varying Parameter-VAR model and monthly data to analyze the dynamism of the QEP, this study is the first to show that the exchange rate channel was the effective QEP transmission channel after around 2005, while the bank lending channel was inactive.

Spillovers of the United States’ Unconventional Monetary Policy to Emerging Asia

2019 ◽  
pp. 118-145
Author(s):  
Ying Xu ◽  
Hai Anh La
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Bank Lending ◽  
The United States ◽  
Quantitative Easing ◽  
Unconventional Monetary Policy ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Cross Border ◽  
Syndicated Loan Market

This chapter assesses the spillover effects of the United States’ unconventional monetary policy on the Asian credit market. With a focus on cross-border bank lending, it employs firm-level loan data with regard to the syndicated loan market and measures the international bank lending channel through changes in United States dollar-denominated loans extended to Asian borrowers. It finds that the growth of dollar credit in Asia increased substantially in response to quantitative easing in the US financial market. The results of this study confirm the existence of the bank lending channel in Asia and emphasize the role of credit flows in transmitting financial conditions. The chapter also provides new evidence of cross-border liquidity spillover in the syndicated loan market. It finds that the overall spillover effect was large but differed significantly in Asia by types of borrowing firms, financing purposes, and loan terms at different stages of the quantitative easing programmes.

scholarly journals The Effects of Quantitative Easing on Bank Lending Behavior

2017 ◽  
Vol 30 (11) ◽  
pp. 3858-3887 ◽  
Author(s):  
Alexander Rodnyansky ◽  
Olivier M. Darmouni
Keyword(s):  
Bank Lending ◽  
Quantitative Easing ◽  
Lending Behavior

scholarly journals Quantitative Easing and Bank Lending: Evidence from Japan

2011 ◽  
Author(s):  
David H. Bowman ◽  
Fang Cai ◽  
Sally M. Davies ◽  
Steven B. Kamin
Keyword(s):  
Bank Lending ◽  
Quantitative Easing

scholarly journals The Impact of Quantitative Easing on UK Bank Lending: Why Banks Do Not Lend to Businesses?

2018 ◽  
Author(s):  
Mahmoud Fatouh ◽  
Sheri M. Markose ◽  
Simone Giansante
Keyword(s):  
Bank Lending ◽  
Quantitative Easing ◽  
The Impact

scholarly journals Bank Lending Channel in Transmission of Monetary Policy in Japan, 2000–2012: The Sign Restrictions VAR Approach

2017 ◽  
Vol 4 (2) ◽  
pp. 87
Author(s):  
Masao Kumamoto ◽  
Juanjuan Zhuo
Keyword(s):  
Monetary Policy ◽  
Forecast Error ◽  
Error Variance ◽  
Bank Lending ◽  
Quantitative Easing ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Forecast Error Variance ◽  
Monetary Policy Shock ◽  
Regional Banks

This paper investigates empirically whether the bank lending channel of monetary policy existed in Japan from 2000 to 2012. We employ the sign restrictions VAR approach to deal with the identification problem. In particular, we focus on the differential effects of a quantitative easing monetary policy regardless of bank (City banks vs. Regional banks) and firm (all enterprises vs. small and medium-sized enterprises－SMEs) size. Our impulse response function analyses show that following a quantitative easing monetary policy shock, the lending of Regional banks increases more than that of City banks, and the bank lending rate of Regional banks declines in a larger magnitude. Moreover, the responses of output to reserve supply are larger in Regional banks than that in City banks. Our variance decomposition analyses show that a larger proportion of the forecast error variance in the bank lending of Regional banks relative to City banks, and a larger proportion of the forecast error variance in the bank lending to SMEs relative to all firms can be explained by monetary policy shock. Similarly, the loans of Regional banks have a larger impact on output than the loans of City banks, and the loans to SMEs have a larger impact on output than the loans to all firms. Moreover, output is more affected by the reserve supply to Regional banks than to City banks. These results together indicate that a quantitative easing policy has a greater impact on the real economy through the lending of Regional banks.

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