Munich Personal RePEc Archive

Does monetary policy affect lending? Evidence from some panel data

Peña, Guillermo (2015): Does monetary policy affect lending? Evidence from some panel data.

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Abstract

This paper examines the impact of monetary policy on bank lending. There is also a contribution to the empirical evidence of the fact that lending expansion was one of the causes of the Great Recession. We develop a dynamic model following the GMM method in two steps using a no-balanced panel of 36 countries of the OECD and the European Union of the period between 1961 and 2012. The study focuses on some aggregated bank sector characteristics in different countries. We show the existence of a bank sector lending channel. We also conclude that the years 2003-2004 provoked a significant loan increase that led to the financial crisis started in 2007.

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