Bank Lending Channel Effectiveness and Loan Sales in the US
Michael R. Jonas, Sharmila K. King
Journal of Economics, Management and Trade · pp. 16–34 · Published 4 Oct 2013
10.9734/BJEMT/2014/6255Abstract
This paper examines whether banks that sell loans in the secondary market respond differently to a monetary policy innovation from those that do not engage in loan sales. We answer this question by measuring the policy response while controlling for loan sales activities. Using a simple theoretical model and U.S. bank-level Call Report longitudinal data for the period 1991Q1-2008 Q4, we conduct a dynamic panel regression analysis. We find that the long-run response to a typical policy shock is three times greater for mid-size banks engaging in loan sales. Given the increase in proportion of banks engaging in loan sales, this finding has strong implications for policy makers and bank industry volatility.
Cited by 0
No indexed citations yet.
Related research
- Effect of Monetary Policy on the Performance of the Nigerian Capital Market (1986 – 2016): Stylized Facts from ARDL Approach — shares topic coverage
- Impact of Monetary Policy on Value of Stock Traded: Short Run and Long Run Evidence from Nigerian Stock Exchange (1987- 2017) — shares topic coverage
- Effect of Monetary Policy on Financial Intermediation in Nigeria — shares topic coverage
- The Differentiated Research of China’s Monetary Policy’s Effect on Stock Price under the SVAR Model----Empirical Analysis Based on Different Economic Backgrounds — shares topic coverage
- Interactions between Asset Prices and Monetary Policy in Taiwan: A Structural VAR Model — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
0
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.