An Examination of the Bank Lending Channel and Monetary Policy During the Pre- and Post-Crisis Period

Posted: 7 Jun 2015

See all articles by Evangelos Salachas

Evangelos Salachas

Athens University of Economics and Business

Nikiforos T. Laopodis

Fairfield University - School of Business - Department of Finance; Deree

Georgios P. Kouretas

Athens University of Economics and Business; IPAG Business School

Date Written: March 5, 2015

Abstract

The purpose of this paper is to analyze the performance, the risk-taking level and the credit growth of fourteen emerging and developed countries’ banks. Also, we aim to assess the influence of monetary policy on the bank lending channel in both pre- and post-crisis periods and whether this reaction changes between expansionary and contractionary regimes. Therefore, we employ both conventional and unconventional measures. As we find, the macroeconomic factors improve the banks’ performance and the credit growth while the level of liquidity has a prominent role in the determination of the loans supply. We find also some interesting results since we observe a significant change in the way that monetary policy is conducted. We assert that the bank lending channel operated effectively in pre-crisis period, whereas monetary policy had insignificant impact of banks’ credit growth during the post- crisis period. Nevertheless, we argue that the effect of unconventional measures on the bank lending channel is statistically important.

Keywords: Bank lending channel, Performance, Risk-taking, Monetary policy, Emerging/Developed economies

JEL Classification: E44, E52, E58, G21

Suggested Citation

Salachas, Evangelos and Laopodis, Nikiforos T. and Kouretas, Georgios P., An Examination of the Bank Lending Channel and Monetary Policy During the Pre- and Post-Crisis Period (March 5, 2015). Available at SSRN: https://ssrn.com/abstract=2614993 or http://dx.doi.org/10.2139/ssrn.2614993

Evangelos Salachas (Contact Author)

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34
Greece

Nikiforos T. Laopodis

Fairfield University - School of Business - Department of Finance ( email )

North Benson Rd.
Fairfield, CT 06824
United States
203-254-4000, ext. 3273 (Phone)
203-254-4105 (Fax)

HOME PAGE: http://www.faculty.fairfield.edu/nlaopodis

Deree ( email )

Gravias 6, Aghia Paraskevi
Athens, 153-42
Greece

Georgios P. Kouretas

Athens University of Economics and Business ( email )

Department of Business Administration
Athens, GR-10434
Greece

HOME PAGE: http://www.aueb.gr/Users/kouretas/index_en.html

IPAG Business School ( email )

184 BD Saint Germain
Paris, 75006
France

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
273
PlumX Metrics