Money, Lending and Banking Crises

Peña, Guillermo (Universidad de Zaragoza)

Resumen: This paper shows that the bank lending channel impacts on lending and on the risk of a banking crisis. The results show that an increase in interest rates will decrease future bank lending and the likelihood of a banking crisis. This effect is dampened during recessionary periods in European countries. Policy implications are also provided. The detrimental effects of a lax monetary policy on a crisis are reduced directly by a highly capitalised financial sector and indirectly in an economy with highly liquid financial entities via lending growth.

Idioma: Inglés

DOI: 10.1111/1759-3441.12195

Año: 2017

Publicado en: Economic papers - Economic Society of Australia 36, 4 (2017), 444-458
ISSN: 0812-0439

Factor impacto SCIMAGO: 0.0 - Economics, Econometrics and Finance (miscellaneous)

Financiación: info:eu-repo/grantAgreement/ES/DGA/S23-23R

Tipo y forma: Article (PostPrint)

Área (Departamento): Área Economía Aplicada (Dpto. Estruc.Hª Econ.y Eco.Pb.)