The Structure of Credit to the Non-Government Sector and the Transmission Mechanism of Monetary Policy: A Cross-Country Comparison

54 Pages Posted: 13 Dec 2005

See all articles by Claudio E. V. Borio

Claudio E. V. Borio

Bank for International Settlements (BIS) - Research and Policy Analysis

Date Written: April 1995

Abstract

This paper provides a unique comparative overview of the structure of credit to the non-government sector in 14 industrialised countries and of its evolution over time with a view to casting new light on the implications for the transmission mechanism of monetary policy. The analysis draws on the central bank responses to a detailed questionnaire and other available information. Characteristics covered include, inter alia, breakdowns of credit in terms of instrument, maturity, the adjustability of contractual interest rates, collateral and the degree of control over the amounts of credit granted. The paper identifies similarities and differences across countries and offers conjectures about their influence on the relative importance of the channels through which monetary policy affects economy activity. The paper is part of a broader BIS cross-country study on the impact of financial structure on the transmission mechanism.

Suggested Citation

Borio, Claudio E.V., The Structure of Credit to the Non-Government Sector and the Transmission Mechanism of Monetary Policy: A Cross-Country Comparison (April 1995). BIS Working Paper No. 24, Available at SSRN: https://ssrn.com/abstract=868430 or http://dx.doi.org/10.2139/ssrn.868430

Claudio E.V. Borio (Contact Author)

Bank for International Settlements (BIS) - Research and Policy Analysis ( email )

CH-4002 Basel, Basel-Stadt
Switzerland